UKHospitality has warned it is “entirely plausible” that the hospitality sector could shed an additional 100,000 jobs due to the autumn budget.
Speaking with the BBC, the group said changes to the national living wage, business rates and tourist tax would likely contribute to any job losses.
UKHospitality CEO Allen Simpson told the BBC that these changes could have an impact on “many early career opportunities”, as he warned that “employing people at the start of their career is increasingly expensive”.
The sector has already lost an estimated 100,000 workers since 2024’s October budget.
Last week, the Treasury confirmed that the national living wage will rise by 50p to £12.71 an hour from April 2026. The national minimum wage for 18 to 20-year-olds will rise by 85p to £10.85 an hour. For 16 and 17-year-olds and those on apprenticeships, it will increase from £7.55 to £8 an hour.
UKHospitality has warned of an additional £1.4bn in costs for the sector as a result of these increases, arguing that the rise for 18 to 20-year-olds was higher than expected and would “put further pressure on youth employment” while also fuelling inflation.
The trade body added that increases to rateable values would see an average pub pay £12,900 more in business rates over three years, as rates climb 76% for pubs and 115% for hotels.
UKHospitality is now calling for the Chancellor to urgently increase the level of business rates discount for hospitality properties from 5p to 20p.
In her speech to the commons, Rachel Reeves also promised “a package of support worth over £4.3bn over the next three years for a property of any size seeing a large increase in their bill”.
UKHospitality chair Kate Nicholls said: “We appreciate the package of transitional relief, but its [the government’s] current proposal is not delivering lower bills. A 20p discount for hospitality would. We urge the Chancellor to revisit.”
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