A survey of hospitality operators from across the sector highlights the effect of recent changes to employer National Insurance Contributions (NICs) and business rates on hospitality businesses.
The survey conducted by UKHospitality, the British Institute of Innkeeping, the British Beer & Pub Association, and Hospitality Ulster shows that one-third of hospitality businesses in the UK are now operating at a loss. This is an increase of 11% points compared to the previous quarter.
6 in 10 reported that they have had to cut jobs, and 63% have reduced the hours available to staff, in order to try and mitigate the increases and stay afloat.
The survey was undertaken last month (May) and is the first indication of the effects of the changes that hit the sector in April. Over half of operators said they have been forced to cancel investment and, with 76% of hospitality operators reporting they have had to increase prices, there is also a knock-on effect to consumers and the wider economy.
In a joint statement, the trade bodies, said: “The Government seems to be setting itself up to miss its own targets with these most recent cost hikes for the hospitality sector.
“Hospitality is vital to the UK economy but is under threat from ongoing costs rises, which the April increases have only exacerbated. Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch.”
