Job losses in UK hospitality sector set to hit 111,000 by November
The hospitality sector makes up more than half of all jobs lost across the UK economy since October 2024, with UKHospitality urging Government to lower business rates, fix national insurance contributions (NICs) and slash VAT,
The UK hospitality industry is on track to have lost 111,000 jobs in just over a year, by the time the Autumn Budget rolls around on 26 November.
The projection, based on new data from the Office for National Statistics, shines a light on the damage wrought by government tax rises announced in the Autumn Statement last year.
Kate Nicholls, chair of UKHospitality (UKH), said the severe job losses would be a “devastating landmark” for hospitality to reach, and would illustrate the “unthinkable damage” done to the sector.
The figures from the ONS reveal that 10,963 hospitality jobs were lost in the last month. Following revisions to ONS data, the total jobs lost in hospitality since the Budget now stands at 84,000. This is 4% of all jobs in the sector, and 55% of all jobs lost in the UK economy.
Call for Gov help
At the time, the Wine Society, the Wine and Spirits Trade Association and the Scotch Whisky Association were among associations who called the Budget a “kick in the teeth”.
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To reverse damage done, Nicholls called on the Government to lower business rates, fix national insurance contributions (NICs) and slash VAT, in the upcoming Budget.
She said: “Hospitality is a sector that has a long and proud history of providing opportunity and jobs for all, and witnessing more than 84,000 jobs lost in hospitality already is heartbreaking.
“The cost increases introduced at last year’s Budget disproportionately hit our pubs, restaurants, hotels and cafes, to name a few, and particularly the 774,000 people employed on part-time or flexible hours.
“Hospitality is being taxed out and the sheer scale of cost increases hitting the sector is forcing businesses to make tough decisions to cut jobs, raise prices, slash investment and reduce hours.
“This is the opposite of what we want to do. We want to create jobs, help people come back into work, invest in our businesses and support the communities we serve.”
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