Hospitality reports 89,000 job losses

The hospitality industry has accounted for more than half of all job losses in the UK since the Budget, new research has shown.

Analysis of ONS jobs data by UKHospitality revealed the sector had been hardest hit by the April tax increases, with almost 89,000 industry jobs lost.

This was roughly 53% of the 164,600 job losses recorded in the UK since last October’s Budget.

The scale of the job losses across the UK economy was also three times worse than what had initially been estimated by the Office for Budget Responsibility.

The OBR had predicted 50,000 layoffs as a direct result of increases to employers’ National Insurance Contributions.

UKHospitality said the current figures aligned with roughly one in 25 hospitality jobs being lost.

As a proportion of its total workforce, the rate of layoffs in hospitality is also believed to be seven times greater than that of the wider economy.

Kate Nicholls, chair of UKHospitality, said: “The number of job losses suffered in hospitality since the Budget is staggering.

“More than half of all job losses since October occurring in hospitality is further evidence that our sector has been by far the hardest hit by the Government’s regressive tax increases.”

She added: “The sheer scale of costs being placed upon hospitality has forced businesses to take agonisingly tough decisions to cut jobs – with part-time and flexible roles often those most at risk. The Government needs to recognise the devastating impact of its tax increases on working people and communities across the country. It should take action at the Budget to reverse this damage by lowering business rates, fixing NICs and cutting VAT.”

Hospitality closures have risen sharply in 2025, with the latest research from Hospitality Market Monitor from CGA by NIQ and AlixPartners showing that between January and March, the total number of operating sites fell 0.3% – the equivalent of 20 closures a week – to 98,866 venues.

Last month, a Conservative MP warned hospitality is being “taxed out of existence” during a debate in Parliament.