ONS figures reveal that the number of vacancies across the UK hospitality sector increased for the first time in a year last month, rising from 74,000 in July to 78,000 in August, despite the number of employees facing its largest annual decline.

The number of people in paid positions across bars, pubs, restaurants and accommodation dropped 4.1 percent from last August to 2.08 million, with business consultancy RSM UK warning any tax increase in the Budget could “derail” further employment.

“While payrolled employees in the hospitality industry saw their biggest year-on-year decline in August, the month-on-month change does indicate the numbers are flattening out,” the company said. “This suggests operators may be close to cutting as far as they can in response to April’s rise in staff costs.”

“Added to this, vacancies in the sector increased for the first time since August 2024, which indicates businesses have turned a corner and are looking to recruit again. However, with speculation and uncertainty building in the lead up to the Budget, there’s every possibility this could be derailed, particularly if businesses are hit with additional tax rises.”