Hospitality job losses set to reach 111,000 by budget

The projection, based on current trends, shows the remarkable damage done to hospitality teams and businesses, as a result of last October’s Budget.

UKHospitality is projecting that 111,000 jobs will have been lost in hospitality by the Budget on November 26, which will be almost 13 months on from the previous Budget that hit hospitality with £3.4 billion of additional annual cost.

The projection, based on the latest data from the Office for National Statistics, is illustrative of the impact these costs have had on jobs. The lowering of the employer NICs threshold has been the most damaging, bringing 774,000 people working part-time and flexible jobs into the tax threshold for the first time.

The figures from the ONS reveal that 10,963 hospitality jobs were lost in the last month. Following revisions to ONS data, the total jobs lost in hospitality since the Budget now stands at 84,000. This is 4% of all jobs in the sector, and 55% of all jobs lost in the UK economy.

The scale of job losses necessitates urgent action at the Budget on 26 November. In order to reverse the damage done, UKHospitality is urging the Government to lower business rates, fix NICs and cut VAT.

Kate Nicholls, Chair of UKHospitality, said: “Losing 111,000 hospitality jobs by the Budget will be a devastating landmark for hospitality to reach and will be one that truly illustrates the unthinkable damage done to our sector.

“Hospitality is a sector that has a long and proud history of providing opportunity and jobs for all, and witnessing more than 84,000 jobs lost in hospitality already is heartbreaking.

“The cost increases introduced at last year’s Budget disproportionately hit our pubs, restaurants, hotels and cafes, to name a few, and particularly the 774,000 people employed on part-time or flexible hours.

“Hospitality is being taxed out and the sheer scale of cost increases hitting the sector is forcing businesses to make tough decisions to cut jobs, raise prices, slash investment and reduce hours.

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“This is the opposite of what we want to do. We want to create jobs, help people come back into work, invest in our businesses and support the communities we serve.

“I would urge the Government to act on our concerns and lower business rates, fix NICs and cut VAT at the Budget. We stand ready to work together on solutions that can reverse the damage already done and help hospitality thrive, not just survive.”