New analysis of ONS jobs data by UKHospitality reveals that hospitality has accounted for 53% of all job losses in the UK since the Budget, confirming the sector is the hardest hit by tax increases.
The scale of job losses is three times worse than estimated by the Office for Budget Responsibility, which predicted 50,000 job losses as a direct result of changes to employer NICs.
It’s also been revealed that:
- One in 25 jobs in hospitality have been lost – representing 4.1% of all jobs in the sector.
- The percentage of job losses within hospitality, as a proportion of its total workforce, is seven times larger than the rate of the wider UK economy.
This new analysis is a further illustration of the regressive nature of changes to employer National Insurance Contributions, in particular the lowering of the threshold. These changes have directly hit part-time and flexible jobs.
UKHospitality is calling for urgent action at the Budget this autumn. The Government needs to lower business rates, fix NICs and cut VAT to stop hospitality businesses being taxed out and to reverse the damage done by increased taxes.
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.
“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.”
