Mon, 25 Aug 2025

Mon, 25 Aug 2025 Half of UK job losses in hospitality, say bosses

Lobby group calls for urgent action to lower taxes, but the government says it is helping establishments.
More than half of job losses in the UK since the last budget have occurred in the hospitality industry, with 89,000 jobs lost since October. According to UKHospitality's analysis of Office for National Statistics data, this represents 53% of all job losses in the country. The group claims that higher taxes and business rates announced by the Chancellor have led to a slowdown in investment and hiring. They are calling for "urgent action" to cut business rates and VAT. The Treasury disputes these claims, citing measures such as extending business rates relief and reducing licensing costs to support pubs, cafes, and restaurants. However, UKHospitality warns that job losses could reach 100,000 by the time of the next budget. UKHospitality chair Kate Nicholls described the situation as "staggering", with one in eight businesses considering site closures and 60% cutting staff numbers. She added that part-time and flexible roles are often the most at risk. Employers in the sector are also facing increased costs due to rising energy bills, ingredients prices, and higher National Insurance contributions. These factors have coincided with a rise in the cost of living, leading to lower sales and profits for leisure industries. Inflation is currently at its highest level since January 2024, driven by increases in air fares and food prices. The Office for National Statistics reported that job openings had continued to fall between May and July, with fewer people on the payroll. The Treasury maintains that it is supporting pubs, cafes, and restaurants through various measures, but UKHospitality remains concerned about the sector's future.
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