The UK hospitality industry has lost 89,000 jobs since the last budget. More than half of all job losses have come from this sector. There is a real impact on many workers who normally rely on a flow of work from being employed in bars restaurants and hotels. A lethal combination of higher costs and increasing taxes, national insurance contributions, amongst them, has resulted in slowed investment and hiring.
It's a grim situation with over 4% of the entire workforce gone and job losses predicted to hit 100,000 by the next budget. Overall, staff is being cut up to 60% in some cases, opening hours are being reduced and entire, established outlets are disappearing.
Chair of UK Hospitality, Kate Nicholls, states that “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. “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. “At a time when the country needs jobs, the Government should be encouraging hospitality to grow and create jobs, not tax them out of existence. “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.”
