Six in ten UK hospitality businesses have made job cuts in the wake of April’s cost increases, according to a new survey conducted by leading industry bodies.

The poll, carried out in May by UKHospitality, The British Institute of Innkeeping, the British Beer & Pub Association, and Hospitality Ulster, also found that a third of hospitality venues – including pubs, bars, restaurants, and hotels – are now operating at a loss, up 11 percentage points from the previous quarter.

Alongside job cuts, 63 percent of businesses reported they have reduced staff hours in a bid to remain afloat. The sector is now grappling with an annual rise of £3.4bn in operating costs. These include £1.9bn in wage increases, £1bn in employer National Insurance contributions (NICs), and £500 million in business rates, after a reduction in rates relief from 75 percent to 40 percent. More than half of businesses surveyed said they have had to cancel investment plans, while 76 percent have raised their prices to cope with the financial strain.

In a joint statement, the trade bodies warned: “Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch.”

They are calling on the government to reverse NIC changes, reduce VAT for the sector, and urgently implement business rates reform.