People 1st falls into administration

Employment and learning organisation People 1st is understood to have fallen into administration.

FRP Advisory is believed to be dealing with the administration of the company.

The withdrawal of government funding for sector skills councils six years ago is believed to be the main cause, following which it "had to rely on its reserves whilst transforming itself", according to accounts filed with Companies House for the year to 31 March 2017.

It recorded revenue of £4.3m for the year and delivered a loss £465,000. In the report it said "the board is confident that the three-year strategic business plan currently being enacted will result in its reserves being replenished by over £500,000" by March 2020.

It added: "There has never been a more challenging time to be dealing with people matters in the hospitality and tourism sector."

UKHospitality chief executive Kate Nicholls said it was unfortunate news for the sector and everyone involved with People 1st.

She added: "First and foremost, our sympathies are with everyone at People 1st and we appreciate the very valuable work they have been doing for the hospitality sector.

"UKHospitality is ready and able to step into the space and support in any way we can, to provide some continuity until a permanent solution is found. Above all, the Government needs to be aware of the issue and ensure that its future actions do not undermine the development of skills in the sector and put the country's valuable hospitality businesses at a disadvantage.

"This now throws into sharp relief the extremely pressing need for skills to be prioritised as part of a sector deal for UK tourism, of which the hospitality sector is a crucial part. In the meantime, we need a Brexit immigration policy that will give the sector time to address its skills and labour needs."

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