[UK] Hospitality sector accounts for more than half of job losses

Leaders in the UK’s hospitality industry have said that more than half of the nation's job losses since the last budget were from their sector, BBC News reports.

According to UKHospitality analysis of Office for National Statistics data, job losses in restaurants, bars, pubs and hotels total around 89,000 since October 2024. 

The group reportedly said that higher taxes announced by Chancellor Rachel Reeves in the Autumn Budget had disproportionately slowed investment and hiring. It added that "urgent action" was needed to cut business rates and VAT.

The Treasury said it was helping pubs, cafes and restaurants by extending business rates relief and cutting the cost of licensing so more establishments could offer al fresco dining.

UKHospitality has around 750 members and represents more than 123,000 venues. It said the sector accounted for 53 per cent of all job losses in the UK.

The group stated that around 4.1 per cent of all jobs in the sector had been lost and claimed that the number could reach 100,000 by the time of the next budget.

Kate Nicholls - chair of UKHospitality - described the numbers as "staggering".

Speaking to BBC Radio 4's Today programme, Ms Nicholls said, "What we're seeing at the moment is a third of businesses cutting their opening hours, one in eight saying that they're closing sites, and 60 per cent saying they are cutting staff numbers. 

"We could see very significant business closures and failures and accelerated job losses going into next year, and it could be as high as we saw during the Covid period.

"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."

A Treasury spokesperson said, "Pubs, cafes and restaurants are vital to local communities, that's why we're cutting the cost of licensing, helping more pubs, cafes and restaurants offer pavement drinks and al fresco dining, and extending business rates relief for these businesses – on top of cutting alcohol duty on draught pints and capping corporation tax."

Source: BBC News

(Quotes via original reporting)

Leaders in the UK’s hospitality industry have said that more than half of the nation's job losses since the last budget were from their sector, BBC News reports.

According to UKHospitality analysis of Office for National Statistics data, job losses in restaurants, bars, pubs and hotels total around 89,000 since October 2024. 

The group reportedly said that higher taxes announced by Chancellor Rachel Reeves in the Autumn Budget had disproportionately slowed investment and hiring. It added that "urgent action" was needed to cut business rates and VAT.

The Treasury said it was helping pubs, cafes and restaurants by extending business rates relief and cutting the cost of licensing so more establishments could offer al fresco dining.

UKHospitality has around 750 members and represents more than 123,000 venues. It said the sector accounted for 53 per cent of all job losses in the UK.

The group stated that around 4.1 per cent of all jobs in the sector had been lost and claimed that the number could reach 100,000 by the time of the next budget.

Kate Nicholls - chair of UKHospitality - described the numbers as "staggering".

Speaking to BBC Radio 4's Today programme, Ms Nicholls said, "What we're seeing at the moment is a third of businesses cutting their opening hours, one in eight saying that they're closing sites, and 60 per cent saying they are cutting staff numbers. 

"We could see very significant business closures and failures and accelerated job losses going into next year, and it could be as high as we saw during the Covid period.

"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."

A Treasury spokesperson said, "Pubs, cafes and restaurants are vital to local communities, that's why we're cutting the cost of licensing, helping more pubs, cafes and restaurants offer pavement drinks and al fresco dining, and extending business rates relief for these businesses – on top of cutting alcohol duty on draught pints and capping corporation tax."

Source: BBC News

(Quotes via original reporting)