New data shows the hospitality sector accounts for more than half of UK job losses since last October’s Budget. Of the 164,641 positions cut across the economy, nearly 89,000 were in the hospitality sector. The figure exceeds Office for Budget Responsibility estimates, which predicted around 50,000 job losses linked to employer National Insurance changes.
Economists attribute the reductions to rising operational costs, including increases to the national living wage and employer National Insurance contributions. Businesses with lower-paid and flexible staff, such as hospitality, retail, and construction firms, have been particularly affected. Part-time and temporary roles are the most vulnerable.
High street retailers have also raised concerns over business rates, which are based on commercial property rental values. Rates are set to rise next year, adding billions to expenses. More than 60 leading firms have urged the Government to reform the system, citing risks to jobs, investment, and consumer prices if costs continue to escalate. Retailers argue that current rates put physical stores at a disadvantage compared with online competitors and stress that stable operating conditions are essential to supporting sustainable employment and economic growth.
