UKHospitality: 170,000 jobs vanish in 13 months
A trade body has estimated that 170,000 UK hospitality jobs have been lost since last year’s autumn Budget in October 2024.
Trade association UKHospitality made the projection based on the latest data from the Office for National Statistics (ONS). It also warned that 64,000 jobs in the industry have been lost in the past two months alone.
UKHospitality called the decline “unprecedented” and claims it “highlights the social and economic damage caused by measures introduced last year”.
In Rachel Reeves’ first Budget as chancellor, delivered in October 2024, she increased employer National Insurance contributions (NICs) by 1.2 percentage points from April this year.
UKHospitality said the measures, in particular the NIC hikes, caused a significant drop in part-time and flexible work in the industry.
The trade group says the hospitality sector has been “disproportionately hit, accounting for more than half of all job losses across the economy over that period”.
The impact of the Budget has also stretched beyond employment, with businesses cutting hours, cancelling investments, raising prices or closing permanently.
Kate Nicholls, chair of UKHospitality, called the latest employment figures for hospitality a “shocking indictment of the damage caused by last year’s Budget”.
She continued: “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.”
Ahead of the next Budget, set for 26 November, UKHospitality is calling for lower business rates, fixed NICs and a cut in VAT for the sector.
“These measures will help reverse some of the damage, protect jobs and allow hospitality to grow and prosper again,” Nicholls noted.
In September this year, UKHospitality estimated that 111,000 jobs in the sector would be lost by the next Budget.
There have been a stark number of closures across the industry.
A report from the Night Time Industries Association this summer revealed that one in four late-night venues has closed since 2020.
According to NIQ data, the sector suffered a net decline of 374 licensed premises in the first half of the year, equivalent to 62 closures per month or two every day.
Several bar chains have also struggled, including late-night cocktail chain Simmons, which collapsed after cashflow issues. The bar operator was saved from administration by its founder in a £6 million (US$8.1m) deal in August, closing four sites and cutting 30 jobs in the process.
Last month, it emerged that the parent company of Revolution and Revolución de Cuba brands is exploring options for the business’ survival, including a formal sales process.
Meanwhile, BrewDog announced the closure of 10 bars across the UK this year.
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