UK Hospitality Sector Faces 111,000 Job Losses Amid Rising Costs and Policy Changes

The UK’s hospitality sector is facing significant job losses, with UKHospitality projecting that 111,000 positions will be lost by the time of the government’s Budget on November 26. The trade body, which represents more than 130,000 venues across the country, has been vocal about the impact of recent policy changes on the industry.

According to UKHospitality, the most damaging change came in the previous Budget, when the government lowered the employer National Insurance Contributions (NICs) threshold. This adjustment brought an estimated 774,000 part-time and flexible workers into the tax bracket for the first time. The industry group argues that this move, along with other measures that have added £3.4 billion in annual costs for hospitality businesses, has put severe pressure on employers.

The hospitality sector is a major part of the UK economy, employing 3.5 million people and contributing £54 billion in tax revenue each year. Data from the Office for National Statistics (ONS) shows that 10,963 jobs were lost in hospitality last month alone. Since the Budget, revised ONS figures indicate that a total of 84,000 jobs have been lost in the sector—about 4% of all hospitality jobs. This means that hospitality accounts for 55% of all job losses across the UK economy during this period.

Based on current trends, UKHospitality expects a further 27,000 jobs to be lost by late November. Kate Nicholls, chair of UKHospitality, described these numbers as devastating for the sector. She said that losing more than 84,000 jobs already is heartbreaking and warned that reaching 111,000 job losses would mark a critical point for hospitality.

UKHospitality is calling on the government to take urgent action in the upcoming Budget to help reverse these losses. The organization is urging ministers to lower business rates, adjust the NICs threshold back to previous levels, and cut VAT for hospitality businesses. Nicholls emphasized that rising costs are forcing businesses to make difficult decisions about staffing and investment. She said that rather than cutting jobs, the industry wants to create employment opportunities and support local communities.

The trade body has stated its willingness to work with government officials on solutions to help stabilize and grow the sector. With hospitality being one of the largest employers in the country and a key contributor to public finances, industry leaders are hoping for swift policy changes to prevent further job losses and support recovery.