The call comes from British Institute of Innkeeping (BII) CEO Steve Alton who has also stated despite the pledge of more money in the pocket for working people from the Government, the opposite will be true.
A recent BII survey showed 83% of respondents will be reducing staff hours and shifts, 63% will be reducing staff numbers via recruitment freezes or redundancies while 72% will reduce their spend with suppliers.
Reduction in workers’ money
These moves will be forced upon hospitality operators after rises in the national minimum/living wage, employer national insurance contributions (NICs), the change in the NICs threshold and the reduction in business rates relief came into force at the beginning of the month (April 2025).
Alton, who has also written to Chancellor Rachel Reeves following the stark results of its findings, explained: “With 83% being forced to reduce team shifts and 63% reducing their head counts through recruitment freezes or redundancies, working people stand to see a reduction in the money in their pockets, contrary to Government’s intentions.
“Our members, despite positive trading for many, are having to take drastic action to keep their heads above water.
Passion and commitment
“The only one to benefit from these tax rises is the Treasury, not hard-working team members and certainly not the licensees who, despite the incredible pressures they are facing, serve their communities with passion and commitment.
“Government needs to understand the dire consequences for our economy, our unemployment rates and our mental health and welfare services if they do not take notice of the reality for pubs across the UK, who collect billions in tax every year, and provide safe, accessible spaces for all to connect and celebrate.”
The BII also discovered that even before the latest plethora of tax increases came into force, almost 75% of survey respondents were either breaking even or losing money. This was despite strong trading for many BII members, with staffing, energy, inflationary costs and more, eroding their profitability.
