The projection, from trade body UKHospitality (UKH), is based on the latest data from the Office of National Statistics (ONS) and is illustrative of the impact the costs imposed from last year’s Budget have had on the sector, according to the organisation.
UKH revealed the lowering of the employer national insurance contributions has had the biggest effect, bringing 774,000 people working part-time and flexible roles into the the tax threshold for the first time.
Official figures showed 10,963 hospitality jobs were lost in the past month. According to UKH, following revisions to the data, the total number of jobs lost in the sector since the Budget in October last year is now at 84,000, which is 4% of all jobs in the industry and more than half (55%) of all jobs lost in the UK economy.
Unthinkable damage
UKH chair Kate Nicholls said: “Losing 111,000 hospitality jobs by the Budget will be a devastating landmark for hospitality to reach and will be one that truly illustrates the unthinkable damage done to our sector.
“Hospitality is a sector that has a long and proud history of providing opportunity and jobs for all and witnessing more than 84,000 jobs lost in hospitality already is heart-breaking.
“The cost increases introduced at last year’s Budget disproportionately hit our pubs, restaurants, hotels and cafés, to name a few, and particularly the 774,000 people employed on part-time or flexible hours.”
The trade body has repeated its calls on the Government to lower business rates, fix national insurance contributions and cut VAT.
Tough decisions
Nicholls added: “Hospitality is being taxed out and the sheer scale of cost increases hitting the sector is forcing businesses to make tough decisions to cut jobs, raise prices, slash investment and reduce hours.
“This is the opposite of what we want to do. We want to create jobs, help people come back into work, invest in our businesses and support the communities we serve.
“I would urge the Government to act on our concerns and lower business rates fix national insurance contributions and cut VAT at the Budget.
“We stand ready to work together on solutions that can reverse the damage already done and help hospitality thrive, not just survive.”
