It’s “entirely plausible” the hospitality sector could lose a further 100,000 workers as a result of the Autumn Budget, according to its trade body.
UKHospitality claims the risk stems from minimum wage rises, the introduction of a tourist tax and an overhaul of business rates.
Its chief executive Allen Simpson says he is particularly worried about the impact on youth employment, as the sector has already shed an estimated 100,000 jobs since the Budget of October 2024, “including many early career opportunities”.
The government said: “We’re protecting pubs, restaurants and cafés with the Budget’s £4.3bn support package”, adding that the changes it had made meant most “typical independent pubs” were saving £4,800 a year.
Workers aged 16 to 24 make up 10% of the country’s total workforce, but account for about half of the workers in some hospitality roles.
“Employing people at the start of their career is increasingly expensive,” Mr Simpson says.
From April, the hourly rate for over-21s will rise by 50p to £12.71, with workers aged 18-20 seeing an 85p rise to £10.85, and under-18s and apprentices getting 45p more, at £8 an hour.
Mr Simpson adds that because “it is increasingly harder for employers to hire people”, it will make it difficult for young people to learn skills including “how to work with colleagues”.
