UKHospitality has predicted that 111,000 jobs will have been lost in hospitality by the time of the Budget on 26 November, thirteen months after the sector was hit with £3.4bn in additional costs during the last Budget.

The projection, based on the latest data from the ONS, demonstrates “the remarkable damage done to hospitality teams and businesses” by  lowering of the employer NICs threshold, and the rise in the NMW.

“Losing 111,000 hospitality jobs by the Budget will be a devastating landmark for hospitality to reach and will be one that truly illustrates the unthinkable damage done to our sector,” said UKHospitality chair Kate Nicholls.

“The cost increases introduced at last year’s Budget disproportionately hit our pubs, restaurants, hotels and cafes, to name a few, and particularly the 774,000 people employed on part-time or flexible hours.”

The ONS figures reveal that 10,963 hospitality jobs were lost over the last month, with the total jobs lost in hospitality since the Budget now standing at 84,000, equivalent to 4 percent of all jobs in the sector, and 55 percent of all jobs lost in the UK economy. 

“Hospitality is being taxed out and the sheer scale of cost increases hitting the sector is forcing businesses to make tough decisions to cut jobs, raise prices, slash investment and reduce hours.”

“I would urge the Government to act on our concerns and lower business rates, fix NICs and cut VAT at the Budget. We stand ready to work together on solutions that can reverse the damage already done and help hospitality thrive, not just survive.”