Since last autumn’s Budget, the hospitality sector has lost a staggering 69,000 jobs. Just take a moment to digest the impact of that stat.
That extraordinarily large figure means that job losses in our sector are now running at three times the rate of the wider economy. Over the same period last year, our sector was a rare bright spot in the UK economy, creating 18,000 jobs and helping to get people back into work. What a reversal of fortune.
This is a direct consequence of policy decisions at last year’s Budget that have disproportionately hit hospitality. The increase to employer National Insurance Contributions (NICs) has made it more expensive to create and retain jobs, especially for entry-level roles that the sector excels at offering. Without a change of tack from the Government we could be looking at 150,000 fewer workers, at least, in hospitality, when we should be bringing people into the jobs market.
The stakes couldn’t be higher for the UK. Hospitality is a vital jobs engine, employing 3.5 million people, contributing £93 billion to the economy, and generating £54 billion in tax revenue for the Treasury every year. Our businesses bring life to high streets, towns, and cities in every corner of the country, and when we thrive, the economy thrives.
We have a proven track record of delivering jobs at scale. In the years following the financial crisis, hospitality was responsible for one in five net new jobs across the UK. Hospitality is a sector that provides opportunities for people from all backgrounds, at every stage of life. But our ability to keep doing so is being eroded.
That’s why UKHospitality is calling on the Government to use the Budget this autumn to reverse this damaging trajectory.
What are we asking for?
Lower business rates to revive high streets through the maximum discount of 20p for hospitality businesses as part of the promised business rates reform.
Fix NICs to boost job creation by extending the existing exemptions to include both young people and those moving from welfare to work.
Cut VAT on hospitality to drive investment by following the majority of European rival nations by reducing VAT on the sector.
How you can help: We need the whole sector to get behind this campaign. Resources, including downloadable assets and guidance on contacting your MP, are available here.
The economy needs jobs, hospitality creates them and it’s time for the Government to recognise that and stop us being #TaxedOut.
Kate Nicholls, Chair of UKHospitality