Analysis of data from the Office for National Statistics (ONS) by UKHospitality (UKH) has revealed hospitality has accounted for 53% of all job losses in the UK since the autumn budget last year.
It means 89,000 of the 164,641 job losses in the UK since October 2024 have been within the hospitality sector.
The scale of job losses is three times worse than estimated by the Office for Budget Responsibility, which predicted 50,000 job losses as a direct result of changes to employer NICs, the trade body said.
Hardest hit
Further analysis revealed one in 25 jobs in hospitality have been lost – representing 4.1% of all jobs in the sector.
The percentage of job losses within the industry, as a proportion of its total workforce is seven times larger than the rate of the wider UK economy.
UKH said the figures illustrated the regressive nature of the changes to employer national insurance contributions, particularly the lowering of the threshold, which has hit part-time and flexible jobs.
UKH chair Kate Nicholls said: “The number of job losses suffered in hospitality since the budget is staggering.
“More than half of all job losses since October occurring in hospitality is further evidence that our sector has been by far the hardest hit by the Government’s regressive tax increases.
“The sheer scale of costs being placed upon hospitality has forced businesses to take agonisingly tough decisions to cut jobs – with part-time and flexible roles often those most at risk.
Devastating impact
“At a time when the country needs jobs, the Government should be encouraging hospitality to grow and create jobs, not tax them out of existence.”
A recent member survey from key sector trade bodies recently estimated more than three quarters of operators had increased prices and more than half had cut staffing numbers as a direct result of increased taxes.
Moreover, data from tax firm Ryan last week revealed eight pubs a week were lost in the six months to June 2025 amid cost pressures.
Ahead of this year’s autumn budget, UKH called on the Government to fulfil its pledge to tackle business rates pressures, fix NICs and cut VAT to stop hospitality businesses being taxed out and reverse the damage done by increased taxes.
Nicholls added: “The Government needs to recognise the devastating impact of its tax increases on working people and communities across the country. It should take action at the Budget to reverse this damage.”
