Hospitality has accounted for more than half of all job losses in the UK since the Budget last October, according to new analysis by trade body UKHospitality.
Of the 164,641 jobs lost nationwide since the Budget, 88,964 were in hospitality. The figures, based on data from the Office for National Statistics (ONS), show the sector made up 53% of total job losses.
The number of hospitality jobs lost is more than three times the 50,000 forecast by the Office for Budget Responsibility (OBR) as a result of changes to employer National Insurance Contributions (NICs).
UKHospitality said that one in 25 roles in the sector have been lost since October, amounting to 4.1% of the total hospitality workforce. This rate is seven times higher than the national average across all industries.
The organisation said the job losses underscore the disproportionate effect of NICs changes on sectors reliant on part-time and flexible employment. It has called on the government to act at the upcoming Budget to support hospitality businesses.
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.
“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.”
She added: “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.”
