Trade association UKHospitality has urged the Prime Minister to take action following the release of new data showing that job losses in pubs, restaurants and hotels are three times higher than in the rest of the economy since last October.
In a letter to Keir Starmer, Kate Nicholls, Chair of UKHospitality, states that the 2024 Budget directly contributed to a reversal in hospitality’s ability to create jobs.
Figures from the Office for National Statistics (ONS) show that between October 2024 and May 2025, the sector lost 69,000 jobs. In the same period the previous year, hospitality created an additional 18,000 jobs.
UKHospitality wants this year’s Budget to “explicitly aim” to reverse the hospitality job losses of the last few months. The letter calls for the government to fix NICs to boost jobs by extending the existing exemptions to include both young people and people moving from welfare to work.
The trade association is also calling for lower business rates to revive high streets and a cut in VAT on hospitality to drive investment in the sector.
Nicholls said: “In the years following the financial crisis, we created one in five net new jobs and today employ 3.5 million people. The government needs sectors like hospitality to create jobs and meet their ambition to get more people back into work.
“We have a proven track record of being able to deliver those jobs in every part of the country and for people from all backgrounds.
“The NICs change was socially regressive and had a disproportionate effect on entry-level jobs. Without a change of tack from the government, we could be looking at over 150,000 fewer workers in hospitality, when we should be bringing people into the jobs market.
“The economy needs jobs. Hospitality creates them. But we are being taxed out.”
NAM Implications:
- An uphill push to convince a government that has shown little sensitivity to business/economic fallout…
- …thus far.
- However, there may be a U-turn window still open following last week’s developments.
- Fingers crossed…
