Hospitality job losses set to reach 111,000

18 September, 2025

Trade body, UKHospitality is projecting that 111,000 jobs will have been lost across the sector by the Budget on 26 November, almost 13 months on from the previous Budget which hit the sector with an additional annual cost of £3.4bn. 

The projection, based on the latest data from the Office for National Statistics (ONS), illustrates the impact these costs have had on jobs. The lowering of the employer NICs threshold has been the most damaging, bringing 774,000 people working part-time and flexible jobs into the tax threshold for the first time. 

The figures from the ONS reveal that 10,963 hospitality jobs were lost in the last month. Following revisions to ONS data, the total jobs lost in hospitality since the Budget now stands at 84,000. This is 4% of all jobs across the sector and 55% of all jobs lost in the UK economy. 

The scale of job losses necessitates urgent action at the Budget on 26 November. To reverse the damage done, UKHospitality is urging the government to lower business rates, fix NICs and cut VAT. 

Kate Nicholls, chair of UKHospitality said:

"Losing 11,000 hospitality jobs by the Budget will be a devastating landmark for hospitality to reach and will be one that truly illustrates the unthinkable damage done to our sector,"

"Hospitality is a sector that has a long and proud history of providing opportunity and jobs for all, and witnessing more than 84,000 jobs lost in hospitality already is heartbreaking. 

"The cost increases introduced at last year's Budget disproportionately hit our pubs, restaurants, hotels and cafés, to name a few, and particularly the 774,000 people employed on part-time or flexible hours. 

"Hospitality is being taxed out, and the sheer scale of cost increases hitting the sector is forcing businesses to make tough decisions to cut jobs, raise prices, slash investment and reduce hours. 

"This is the opposite of what we want to do. We want to create jobs, help people come back into work, invest in our businesses and support the communities we serve. 

"I would urge the government to act on our concerns and lower business rates, fix NICs and cut VAT at the Budget. We stand ready to work together on solutions that can reverse the damage already done and help hospitality thrive, not just survive."

Share this article:

Stay connected

Enter your email address to be kept up to date with latest news, company developments and market insights. You can unsubscribe at any time.
View our Privacy Policy.