Half of job losses since Budget in hospitality as bosses warn UK will lose 'vital spark' if tax rises continue
Hospitality bosses have said more than half of job losses since the last budget have come in their sector.
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Restaurants, pubs, hotels and bars have been hit with a “staggering” 89,000 job losses since last October, UKHospitality analysis of Office for National Statistics data revealed.
The group places the blame for job losses at the feet of Chancellor Rachel Reeves, who increased taxes for employers in last year’s Autumn budget.
While the government has said it plans to help the hospitality sector by extending business rate relief for restaurants, pubs and hotels, industry leaders warn this isn’t enough.
UKHospitality, representing more than 123,0000 venues across the UK, said at least 53% of job losses have come from hospitality since last October.
Kate Nicholls, chair of UKHospitality, told LBC the UK will lose its “vital spark” if job losses continue.
"What we're seeing at the moment is a third of businesses cutting their opening hours, one in eight saying that they're closing sites, and 60% saying they are cutting staff numbers," she told the BBC.
"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."
A spokesperson for the Treasury said: "Pubs, cafes and restaurants are vital to local communities, that's why we're cutting the cost of licensing, helping more pubs, cafes and restaurants offer pavement drinks and al fresco dining, and extending business rates relief for these businesses – on top of cutting alcohol duty on draught pints and capping corporation tax."
Last week, some of the county’s biggest chains signed a letter to the Chancellor sent by trade body British Retail Consortium.
Major British retailers, including Tesco, Sainsbury’s and Boots have issued a warning to Rachel Reeves that raising taxes in the autumn budget could contradict her plans to improve UK living standards.
It warns that further tax rises on businesses could result in the Labour Government breaking its manifesto pledge to provide “high living standards”.
“Labour’s manifesto made a clear and welcome promise to deliver good jobs and higher living standards but if future policy decisions lead to rising prices and fewer jobs, then those commitments are at risk,” the letter reads.
The UK bosses of Aldi, Lidl, B&Q, Currys, Burger King, Ikea, JD Sports, Boots, John Lewis and Primark were also among the signatories.