Hospitality Industry Faces Majority of UK Job Cuts Post-Budget

According to data released by UKHospitality, one in every 25 hospitality jobs—equivalent to 4.1% of the sector’s workforce—has disappeared in the past year. Alarmingly, the sector’s job loss rate is seven times higher than the national average. Much of this decline has been attributed to changes in employer National Insurance Contributions (NICs), especially the lowered threshold that has hit part-time and flexible roles hardest.

In response, UKHospitality is urging the government to take urgent action in the upcoming autumn Budget. The organization has called for meaningful reforms such as cutting VAT, revising NICs, and reducing business rates to help ease financial pressures on hospitality businesses.

These job losses highlight the disproportionate impact of recent tax adjustments on the hospitality sector, forcing many businesses to make difficult staffing decisions. To raise awareness and encourage change, UKHospitality has launched the #TaxedOut campaign, which invites individuals and businesses to engage with policymakers, contact their MPs, and show support on social media.

As one of the UK’s largest employers, the hospitality industry plays a vital role in both the economy and local communities. Addressing these challenges is essential to protecting jobs and ensuring the long-term sustainability of the sector.