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89,000 UK jobs lost in hospitality since autumn Budget

  • Eloise Hanson
  • 26 August 2025
  • 2 minute read
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This article was written by Boutique Hotel News. Click here to read the original article

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Reading Time: 2 minutes

UK: Analysis of data from the Office for National Statistics has revealed that hospitality has accounted for over half (53 per cent) of all job losses in the UK since the Budget last October. 

The scale of job losses (164,641 in total) is three times worse than originally estimated by the Office for Budget Responsibility, which predicated that 50,000 jobs would be lost as a direct result of changes to employer national insurance contributions (NICs).

The percentage of hospitality job losses, as a proportion of its total workforce, is seven times larger than the rate of the wider UK economy. It represents one in 25 jobs lost – almost 89,000 in total – or 4.1 per cent of all jobs in the sector.

UKHospitality is calling for urgent action at the Budget this autumn, focussed on lowering business rates, fixing NICs and cutting VAT.

Kate Nicholls, chair of UKHospitality, said: “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.

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“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,” she added.

Highlights: 

• The UK hospitality sector has lost 89,000 jobs since the October Budget, accounting for more than half of all job cuts nationwide.

• Job losses in hospitality are almost double initial forecasts after NICs increases were introduced.

• The sector’s workforce has shrunk by 4.1 per cent, or one in every 25 jobs.

• UKHospitality is urging the government to cut VAT, fix NICs, and reduce business rates in the upcoming Budget to protect jobs and growth.

Please click here to access the full original article.

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