A joint survey conducted by leading hospitality trade bodies including The British Beer and Pub Association, the British Institute of Innkeeping, Hospitality Ulster and UKHospitality has revealed the scale of the economic disaster which will be the result of new employment costs and the reduction in rates relief come April.

The figures reveal that 70 percent of businesses will reduce their employment levels, 60 percent are cancelling planned investment and 29 percent plan to reduce trading hours.

Furthermore 25 percent have no cash reserves left and 15 percent predict they will have to close at least one site. 

Responses to the survey highlight how a delay to the changes to the employer NICs threshold would avoid the immediate impact on jobs and investment allowing hospitality to deliver the growth that the government is seeking as part of its broader economic strategy.  

When asked how the Government could support the sector, businesses cited a reversal of employer National Insurance Contribution changes as the second biggest priority after a lower rate of VAT for hospitality.

In a joint statement, the trade bodies said: “These figures should serve as a clear warning that pubs, brewers and hospitality venues will be forced to make painful decisions to weather these new costs, which will have damaging impacts on businesses, jobs and communities.

“At a time when hospitality has been one of the top contributors to economic growth, the last thing the Government should be doing is piling on costs that will impact employment and cut off our ability to grow.

“We want to work with Government so we can continue to vitally boost the economy, which is why we urge them to delay the changes to the employer NICs threshold. This would help save jobs and allow the sector to continue on its growth path.

“If it doesn’t act then businesses are clear that the impact on communities, employees and supply chains will be significant. They have warned about potential lost earnings, lost jobs, reduced trading hours and, in some cases, business failure. This would mean the loss of essential community hubs that would otherwise drive the local economy and create jobs.

“Our message to Government is to delay its changes to the employer NICs threshold and allow hospitality to continue to deliver economic growth, regenerate our high streets and support local communities.”