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November Budget: UKH demands action as hospitality job losses mount

UKH detailed that the latest ONS data shows that in the wider economy, 170,000 less people are on payroll compared to the period before the last Budget, with 64,000 jobs lost in the past two months alone.

The organisation asked for measures including lower business rates, changes to NICs and cuts to VAT.

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UKH said that these measures would help to mitigate a “job crisis” caused by measures introduced last year.

According to the trade body, hospitality – which employs more than 3.5m people – has been hit hard. Job losses in sector have accounted for more than half of all since the last Budget, along with additional impacts such as businesses reducing hours, cancelling investment, raising their prices or closing altogether.

As the third largest employer in the UK, the hospitality contributes £93 billion annually to the UK economy, generating £54 billion in tax for the Treasury.

Kate Nicholls, chair of UKH, said: “Thirteen months of falling employment and 170,000 fewer people on payroll is a shocking indictment of the damage caused by last year’s Budget.

“Hospitality has borne the brunt of these changes, with more than half of all job losses coming from our sector. If the Government wants to get more people back into work and revitalise high streets, it needs hospitality firing on all cylinders, but right now we’re being taxed out.

“We urgently need action at the upcoming Budget and are calling on the Government to lower business rates, fix NICs and cut VAT. These measures will help reverse some of the damage, protect jobs and allow hospitality to grow and prosper again.”

UKH has repeatedly called for action from the government, most recently releasing an open letter which gained 345 signatories from hospitality businesses, as Harpers reported.

The trade body represents more than 130,000 venues, from pubs, bars and restaurants to hotels and indoor leisure.

The BBC recently reported that the Lib Dems have also called for a 5% cut in VAT for the hospitality sector, in order to boost footfall in venues across the UK. 

• tax
• hospitality
• VAT
• UKHospitality
• UKH
• job losses
• unemployment
• NICs