Hospitality industry on track to lose 111,000 jobs by next Budget

The UK hospitality industry is on course to have lost 111,000 jobs in just over a year by the next Budget on 26 November.

The projection, based on the latest data from the Office for National Statistics (ONS), shows the damage done to the sector by government tax rises announced in the 2024 Autumn Statement.

UKHospitality chair Kate Nicholls said it would be a “devastating landmark for hospitality to reach”, and the industry was being “taxed out”.

The lowering of the employer NICs threshold in April has had the most impact, bringing 774,000 people working part-time and flexible jobs into the tax threshold for the first time.

ONS figures revealed that 10,963 hospitality jobs were lost in the last month. Following revisions to earlier ONS data, the total jobs lost in hospitality since the Budget now stands at 84,000 – this is 4% of all jobs in the sector and 55% of all jobs lost in the UK economy.

UKHospitality is urging the government to lower business rates, alter employer NICs and cut VAT in the next Budget to save businesses and jobs.

Nicholls said: “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.

“This is the opposite of what we want to do. We want to create jobs, help people come back into work, invest in our businesses and support the communities we serve.

“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.”

Announcing the date of November’s Budget, Chancellor Rachel Reeves said Britain’s economy wasn’t “broken” but admitted it was “not working well enough for working people”.

Hospitality closures have also risen sharply in 2025, with the research from Hospitality Market Monitor from CGA by NIQ and AlixPartners showing that between January and March, the total number of operating sites fell 0.3% – the equivalent of 20 closures a week – to 98,866 venues.

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