UKHospitality warns of 100,000 job losses post-Budget

UKHospitality has warned it is “entirely plausible” the sector could lose a further 100,000 workers as a result of last week’s Budget.

Chief executive Allen Simpson told the BBC the rise in minimum wage, the introduction of a tourist tax and changes to business rates could stifle “many early career opportunities”.

Hospitality has already lost an estimated 100,000 jobs since the Budget of October 2024 and experienced an average of two licensed venues permanently closing each day in the first half of 2025, according to the Hospitality Market Monitor from CGA by NIQ and AlixPartners.

The sector is also especially reliant on workers aged 16 to 24, who are believed to make up roughly half of its workforce.

Simpson told the BBC the increases to the National Minimum Wage from April 2026, particularly the 85p jump to £10.85 per hour for those aged 18-20, as well as apprentices getting 45p more, at £8 an hour, could discourage businesses from hiring young staff.

The hourly National Living Wage for over-21s will also rise by 50p to £12.71, a 4.1% rise on this year’s hourly rates (£12.21).

Last week, UKHospitality warned the combination of wage rises, holiday taxes and steep increases in rateable values are ‘wiping out’ the 5p business rates discount for hospitality.

New rateable values used to determine bills, published after the Budget, said accommodation businesses are seeing rateable values increase 76%, pubs by 30% and restaurants and cafés by 14%.

The trade body estimated the changes would cost the hospitality industry an extra £1.4b.

The Treasury said: “Overall, we’re spending £4.3b of taxpayer money on a support package. This includes protection for businesses who would otherwise have seen sharp increases in bills next year.”