Hospitality Sector Accounts for Over Half of UK Job Losses Since Last Budget, New Analysis Reveals

More than half of all UK job losses since last year’s Autumn Budget have come from the hospitality sector, according to new analysis of ONS jobs data by UKHospitality.

The figures reveal that almost 89,000 of the 164,641 jobs lost since October 2024 were in hospitality, representing 53% of the total losses across the economy.

“The number of job losses suffered in hospitality since the Budget is staggering,” said Kate Nicholls, Chief Executive of UKHospitality. “More than half of all job losses since October occurring in hospitality is further evidence that our sector has been by far the hardest hit by the Government’s regressive tax increases.”

The 2024 Autumn Budget has faced widespread criticism from the sector after burdening operators with higher employment costs – including increased National Insurance contributions (NICs) – alongside reduced business rates support.

“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 the most vulnerable,” Nicholls continued. “At a time when the country desperately needs jobs, the Government should be supporting hospitality to grow and create opportunities, not taxing it out of existence.”

The analysis also highlights that, as a proportion of the sector’s total workforce, hospitality job losses have been seven times higher than the rate across the wider UK economy.

In response, UKHospitality is urging the Government to take urgent action in the upcoming Autumn Budget.

“The Government needs to recognise the devastating impact of its tax increases on working people and communities across the country,” Nicholls added. “It should act decisively this autumn to reverse the damage by lowering business rates, fixing NICs and cutting VAT.”