The figures show the sector employed 8,784 fewer people in December compared with November, despite the period traditionally being a peak recruitment window for the festive season.
Employment was also 20,014 lower than in September, highlighting how sharply staffing levels have fallen during what is usually the busiest trading quarter of the year.
Growing concern
The data adds to growing concern about the cumulative financial pressure facing operators following successive Budgets that have increased the sector’s cost base. Despite strong Christmas sales for many pubs, operators have warned that rising overheads are eroding margins, particularly ahead of substantial business rates hikes due in April.
UKHospitality said the employment numbers reinforced the strain on businesses. Chief executive Allen Simpson commented: “Hospitality is being hit by costs at every angle and it is the cumulative effect of this growing tax burden that is resulting in the number of people employed in hospitality continuing to fall.
“It was less than a year ago when our local hospitality venues were landed with £3.4bn in additional annual costs and now they face their business rates increasing too.
Job losses accelerating
“We saw significant job losses before the Budget and we are seeing that continue to accelerate.
“Hospitality has so much potential to drive growth, create new jobs and help people back into work but it is being held back by the highest tax burden in the economy.
“Looming business rates increases are only making things worse and the Government needs to act urgently to bring forward a hospitality wide solution that averts those hikes. If it does not we will only see job losses and business closures accelerate.”
UKHospitality is calling for the business rates discount for the sector to be increased to the maximum 20p permitted in law.
The employment figures land as business rates dominate the political agenda. Earlier this month The Morning Advertiser (The MA) reported that Chancellor Rachel Reeves had signalled targeted support for pubs, telling the BBC she was “particularly concerned” about steep valuation increases facing the segment when Covid era relief ends in April.
However, after criticism that a pubs-only intervention would leave the rest of the sector exposed, Reeves later indicated she was “working with the hospitality sector” more broadly, and did not rule out extending relief to restaurants and hotels.
At the same time, ministers are preparing to revisit the Autumn Budget’s valuations. Business secretary Peter Kyle has since acknowledged that the Government “did not have access” to the full set of new rateable values before the Budget was announced, prompting expectations of a wider rethink.
Sector modelling suggests thousands of venues could become unviable without a hospitality wide response, adding further urgency to calls for a 20p discount to the multiplier.
