UK hospitality sector faces 111,000 job losses
A trade body has estimated that 111,000 UK hospitality jobs will be lost by the time the budget is held on 26 November.
Trade association UKHospitality made the projection based on the latest data from the Office for National Statistics (ONS), which it attributed to the lowering of National Insurance contributions (NICs). This “damaging” move brought 774,000 people working part time and flexible jobs into the tax threshold for the first time.
Figures from the ONS also reveal that 10,963 hospitality jobs were lost in the last month.
Since the last budget statement was delivered in March, UK Hospitality said the total number of roles lost in the industry now stands at 84,000 (based on ONS figures) – equal to 4% of all jobs in the sector.
As such, UKHospitality is calling for urgent action from the government, citing the need 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.”
Nicholls warned that the industry is “being taxed out” and “forcing businesses to make tough decisions to cut jobs, raise prices, slash investment and reduce hours”.
She added: “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.
“We stand ready to work together on solutions that can reverse the damage already done and help hospitality thrive, not just survive.”
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