HALF of all job losses since the October budget have been in the hospitality sector, according to worrying figures from a trade body.
Hospitality accounted for 53% of all job losses in the UK since the autumn Budget, analysis of data from the Office for National Statistics by UKHospitality has revealed.
Thousands of pubs and restaurants have been hit by changes in the Budget[/caption]
Around 89,000 of the 164,641 job losses in the UK since October 2024 have been in hospitality.
It means that one in every 25 jobs in pubs, hotels, cafes, restaurants and bars have been lost.
Meanwhile, it puts more pressure on remaining workers at busy times.
The number of job losses is three times worse than was estimated by the Office for Budget Responsibility.
It predicted that 50,000 jobs would be axed as a result of changes introduced after the Budget.
Hospitality has been particularly hard-hit by the changes announced by Chancellor Rachel Reeves.
In her speech the Chancellor increased the rate of employer National Insurance contributions from 13.8% to 15% and cut the threshold at which they apply from £9,100 a year to £5,000.
The change means the tax now applies to more low-paid and part-time staff at cafes and restaurants.
Meanwhile, an increase in the national minimum wage to £12.21 an hour has upped labour costs for thousands of hospitality businesses.
There were just 73,000 job vacancies in accommodation and food services in the three months to July, according to the Office for National Statistics.
Excluding the pandemic, this is the fewest vacancies since 2014.
UKHospitality chair Kate Nicholls described the number of job losses since the Budget as “staggering”.
She added: “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.”
She added that 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.
More than three quarters of companies had recently increased prices, according to a recent survey from key sector trade bodies.
Meanwhile, more than half said they had cut staff as a direct result of the tax increases.
Around eight pubs a week have been lost in the six months to June 2025 amid cost pressures, according to worrying figures from tax firm Ryan.
UKHospitality is now calling on the government to fulfill its pledge to tackle business rate pressures, fix National Insurance and cut VAT.
It says these measures are needed to stop hospitality firms from being taxed out of business and reverse the damage done by increased taxes.
Kate Nicholls 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.”
What is happening in the hospitality industry?
Several pubs and restaurants have warned they will need to push up prices in order to make ends meet.
Among them is Stonegate Group, which in May hiked the price of beer and alcoholic drinks by 4% in its leased and tenanted pubs.
The firm, which owns Slug & Lettuce, Walkabout and Popworld, was forced to pass on much of the price increase to customers.
At the time a spokesperson for the chain said: “Our annual price review this year reflects the significant cost pressures and challenges faced by our sector over the last 12 months.
“We are absolutely committed to supporting our publicans, enabling them to continue to play the vital role in the communities they serve.”
Meanwhile, in June the chief executive of Fuller’s said the group had upped the price of a pint of beer after being hit with £8million in extra costs.
Simon Emeny, boss at Fuller, Smith and Turner, said the firm bumped up prices at the end of March ahead of an increase in employer National Insurance contributions and the national minimum wage in April.
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