The trade body called for a reduction in employer National Insurance contributions (NICs) after research revealed some 100,000 hospitality jobs have been lost over the past two years, accounting for 45% of all roles lost across the UK economy during that period.
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Further analysis of Office for National Statistics (ONS) data showed hospitality accounted for almost a third (31%) of first jobs for 16-to-24-year-olds and employed 18.2% of all young people in work across the country.
However, UKH warned the sector’s ability to maintain these opportunities for young people would be eroded without action to address its tax burden at the upcoming Budget.
It said hospitality businesses paid 82% of pre-tax profits in business taxes, the highest proportion of any sector, while facing more than £5bn in additional costs over the past two years.
Creation superpower
UKH urged the Government to progressively increase the employer NICs threshold for hospitality businesses to £10,000 by the end of Parliament.
Chief executive Allen Simpson said the sector was the nation’s “biggest creator” of jobs for young people, with around 300,000 roles created each year.
“A third of all first jobs for under-25s are in hospitality,” he continued.
“That job creation superpower has been put in jeopardy over the past two years, with hospitality hit by more than £5bn in extra costs. The result? 100,000 jobs lost and a tax burden double that of a bank.”
He added Chancellor John Healey’s first Budget on Wednesday 28 October should signal a shift towards supporting hospitality and job creation.
“Without action, our already-stretched ability to provide those job starts for young people will be put at risk,” Simpson said.
Cost pressures
“We’ve already seen enough jobs and opportunities lost, and we don’t want to see any more. It’s time to cut the cost of employment, let hospitality hire again and allow us to help solve the NEETs crisis.”
Earlier this week, the trade body set out a blueprint for the Government and local authorities to support high street regeneration and remove regulatory barriers.
The placemaking report included 33 recommendations, covering business rates, infrastructure, licensing, planning, rent and skills.
It called for policies that enabled faster planning approvals, licensing reform and expanded hospitality training programmes, alongside action to reduce the sector’s tax burden.
Commenting on the report, Simpson said: “Hospitality is one of Britain’s greatest strengths.
“By tackling both the cost pressures facing businesses and the regulatory challenges outlined in this report, we can create more vibrant places where people want to live, work and invest.”
