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Hospitality job losses deepen ahead of Budget

More than half of the total job losses across the economy have come from hospitality.

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Employment in the UK hospitality sector has fallen for 13 consecutive months, with new ONS data revealing the industry continues to bear the brunt of a wider jobs downturn.

Figures from the Office for National Statistics show 170,000 fewer people are on payroll compared with the period before last year’s Budget, including 64,000 jobs lost in the past two months. 

More than half of the total job losses across the economy have come from hospitality.

According to UKHospitality, the decline highlights the long-term impact of Budget measures introduced last year, particularly changes to employer national insurance contribution (NIC) thresholds, which it said have disproportionately affected part-time and flexible workers.

Businesses have responded to the pressures by cutting hours, delaying investment and, in many cases, closing sites altogether.

Kate Nicholls, chair of UKHospitality, said: “Thirteen months of falling employment and 170,000 fewer people on payroll is a shocking indictment of the damage caused by last year’s Budget.

“Hospitality has borne the brunt of these changes, with more than half of all job losses coming from our sector. If the Government wants to get more people back into work and revitalise high streets, it needs hospitality firing on all cylinders, but right now we’re being taxed out.

She added: “We urgently need action at the upcoming Budget and are calling on the Government to lower business rates, fix NICs and cut VAT. These measures will help reverse some of the damage, protect jobs and allow hospitality to grow and prosper again.”

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