The figures, from trade body UKHospitality (UKH), come as hospitality businesses face an additional £1.9bn in wage costs, £1bn of employer National Insurance Contributions (NICs) and £500m in business rates.
Operators are facing a combined annual cost increase of £3.4bn from today (1 April), with higher wage bills, rising National Insurance contributions and reduced business rates relief compounding pressure on businesses.
The cost of employing a full-time worker over the age of 21 has now risen by over £2,500 a year, according to UKH, up 10%. The cost of employing staff aged below 18 has increased by 18% and for employees aged between 18 and 20 years old it has increased by 16%.
The cost of employing staff aged below 18-years-old has increased by 18% and for employees between 18- and 20-years-old it has increased by 16%.
“The costs hitting hospitality this month are eye-watering, and the impacts it will have on businesses, teams and communities are stark,” says UKH chief executive Kate Nicholls.
“We’ve already seen a chilling effect on investment plans and job creation – all of which have been put on hold or shelved.
“As costs begin to bite, we’ll see venues having to tighten their belt even further through restricting trading hours or, in a worst-case scenario, cutting jobs.”
UKH is urging the Government to urgently bring forward a plan for hospitality businesses that it says enables the sector to unlock growth and jobs. This includes the Treasury ensuring its business rates reform, to be unveiled in the Autumn, offers the maximum discount for hospitality businesses.