Hospitality Industry Warns of Job Cuts and Price Hikes
UK pubs and restaurants are threatening significant job cuts and price increases unless Chancellor Rachel Reeves provides tax relief in next week’s Budget. The sector continues to struggle with the combined impact of last year’s National Insurance increases and minimum wage hikes.
Survey Reveals Widespread Concerns
A recent survey conducted by UK Hospitality and other trade bodies shows alarming trends:
- Nearly 60% of hospitality businesses plan to reduce staff or raise prices
- The industry describes the situation as “increasingly perilous”
- Urgent government intervention is needed to prevent widespread closures
Industry representatives stated: ‘The situation facing our local pubs, neighbourhood restaurants and other hospitality venues is becoming increasingly perilous.’
Key Demands from Hospitality Sector
The industry is calling for specific measures to support businesses:
- Reductions in business rates and VAT
- Reforms to National Insurance contributions
- Protection for pubs and restaurants that provide local employment
Simon Emeny, executive chairman of pub chain Fuller, Smith & Turner, emphasized that rising costs have forced businesses to take ‘evasive actions to maintain some semblance of profitability.’
