National Insurance Hike Costs Hospitality 69,000 Jobs, Up to 200,000 at Risk

Britain’s hospitality industry has lost 69,000 jobs since last autumn, with industry leaders warning the total could hit 200,000 if the government’s hike in employer National Insurance isn’t reversed.

NFFF President, Andrew Crook has said ““we are now seeing the unintended effects from the budget which are wriggling growth and costing jobs. We need urgent action to help the sector survive and start to thrive to provide much needed growth on the economy”

Figures from the Office for National Statistics show pubs, restaurants, and hotels have suffered their worst job losses outside the pandemic. By contrast, the sector created 18,000 jobs in the same period the previous year.

UKHospitality chair Kate Nicholls called the tax hike “socially regressive,” arguing it unfairly targets entry-level jobs while the government also tries to cut welfare spending. She’s urged ministers to extend NI relief to under-30s and long-term unemployed returners to help businesses recruit and protect jobs.

Already, 70% of hospitality businesses are cutting staff, and a third are reducing trading hours to cope with rising costs.

Chancellor Rachel Reeves faces a £5 billion budget gap after abandoning welfare reforms, and may be forced to raise other taxes. Meanwhile, the government insists it’s supporting small businesses and stabilising public finances — but the industry says time is running out.