The trade body is calling on the Government ‘to reverse the damage of the past two years’ and ‘turn over a new leaf of job creation’ for young people after its analysis found that 45% of all jobs lost in the economy were in hospitality.
According to UKH, nearly 100,000 hospitality jobs have been lost in the UK in the past two years.
Analysis of ONS data shows the sector provides around 300,000 job starts for 16-24-year-olds every year, but UKH says the sector’s ability to maintain that will be further eroded without action to reduce the sector’s tax burden.
It is calling for the Government to reduce employer NICs for hospitality by progressively increasing the threshold to £10,000 by the end of the Parliament.
“Hospitality has always been the nation’s biggest creator of jobs for young people. A third of all first jobs for under-25s are in hospitality. We create around 300,000 job starts each and every year,” says UKH chief executive Allen Simpson.
“That job creation superpower has been put in jeopardy over the past two years, with hospitality hit by more than £5 billion in extra costs. The result? 100,000 jobs lost and a tax burden double that of a bank.
“The first Budget under the new Prime Minister should be a moment for change. Put the last two years behind us and move forward by backing hospitality to deliver jobs in every postcode.
“Without action, our already-stretched ability to provide those job starts for young people will be put at risk. We’ve already seen enough jobs and opportunities lost, and we don’t want to see any more.
“It’s time to cut the cost of employment, let hospitality hire again and allow us to help solve the NEETs crisis.”
According to UKH, hospitality pays 82% of its pre-tax profits in business taxes, the highest in the economy, but it currently remains a youth employment powerhouse, accounting for almost a third (31%) of all first jobs for 16-to-24-year-olds.
The sector employs around a fifth (18.2%) of all young people in work.