Hospitality has ‘borne the brunt’ of job losses since last Budget

The hospitality industry has been “disproportionately hit” by job losses in the fallout since last year’s Budget, new research has shown.

There are 170,000 fewer people on the payroll in the UK compared to the period before chancellor Rachel Reeves’ announcement in October 2024, with 64,000 jobs lost in the last two months alone, according to UKHospitality analysis of data from the Office for National Statistics.

The trade body said its research showed the hospitality sector accounted for more than half of all job losses across the economy over that period.

Last year’s Budget measures, including changes to employers’ National Insurance Contribution thresholds, have hit those in part-time and flexible employment the hardest, according to UKHospitality.

It said restaurants, hotels and pubs were being forced to cancel investment, reduce opening hours, raise prices and in some cases permanently close.

Britain’s licensed hospitality sector has seen nearly 600 net closures over the past year, according to the latest Hospitality Market Monitor from CGA by NIQ.

UKHospitality is calling on the government to lower business rates, cut hospitality VAT and address the impact of changes to NICs in the next Budget on 26 November.

Earlier this week 345 hospitality businesses including pub giant Greene King, restaurant chain Wagamama and IHG Hotels & Resorts signed a letter calling on the government to better support the industry and help it “get back to growth”.

Hospitality bosses have warned that more businesses could close if the chancellor goes ahead with a rumoured 50p increase in the national living wage to around £12.70 per hour next year.

Kate Nicholls, chair of UKHospitality, said: “Thirteen months of falling employment and 170,000 fewer people on payroll is a shocking indictment of the damage caused by last year’s Budget. 

“Hospitality has borne the brunt of these changes, with more than half of all job losses coming from our sector. If the Government wants to get more people back into work and revitalise high streets, it needs hospitality firing on all cylinders, but right now we’re being taxed out.

“We urgently need action at the upcoming Budget and are calling on the government to lower business rates, fix NICs and cut VAT. These measures will help reverse some of the damage, protect jobs and allow hospitality to grow and prosper again.”

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