The trade body claims almost 89,000 of the 164,641 job losses in the UK since the Budget last October have been in hospitality.
“The number of job losses suffered in hospitality since the Budget is staggering,” says Kate Nicholls, chair of UKHospitality.
“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 2024 Autumn Budget has been much criticised by sector having saddled operators with a rise in employment costs including National Insurance contributions (NICs), and a cut in business rates support.
“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,” Nicholls continues.
“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.”
In light of the analysis, which also shows that the percentage of job losses within hospitality, as a proportion of its total workforce, is seven times larger than the rate of the wider UK economy, the trade body is once again calling for urgent action at the Budget this autumn.
“The Government needs to recognise the devastating impact of its tax increases on working people and communities across the country,” Nicholls adds.
“It should take action at the Budget to reverse this damage by lowering business rates, fixing NICs and cutting VAT.”