UK Hospitality Sector Faces Job Losses Amid Rising Costs and Business Rate Changes
Published 4 December 2025
Highlights
- The UK hospitality sector could face a loss of 100,000 jobs due to minimum wage hikes and business rate changes.
- UKHospitality warns that youth employment is particularly at risk, with young workers making up a significant portion of the sector's workforce.
- Small brewers are urging the government to reconsider business rate changes, which they claim could lead to more pub closures.
- The government has introduced a £4.3 billion support package, but industry leaders argue it is insufficient to counteract rising costs.
- The number of hospitality premises with alcohol licenses has decreased by 13.6% since the pandemic, highlighting ongoing challenges.
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Rewritten Article
UK Hospitality Sector Faces Job Losses Amid Rising Costs and Business Rate Changes
The UK hospitality sector is bracing for a potential loss of 100,000 jobs following recent government budget announcements, according to UKHospitality. The trade body attributes this risk to increases in the minimum wage, the introduction of a tourist tax, and changes to business rates. These developments could significantly impact youth employment, as young workers constitute a large portion of the hospitality workforce.
Impact on Youth Employment
Allen Simpson, CEO of UKHospitality, expressed concerns about the rising costs of employing young people, which could hinder their ability to gain essential skills. The latest figures from the Office for National Statistics (ONS) reveal that 702,000 individuals aged 16 to 24 are currently unemployed, marking an increase of 60,000 from the previous year. Saif Miah, a 23-year-old job seeker from West London, shared his struggles in securing a position in the hospitality industry, highlighting the emotional toll of repeated rejections.
Business Rate Concerns
In a parallel development, the Society of Independent Brewers has called on the government to reconsider business rate changes, which they argue could be detrimental to pubs and small brewers. The organization warns that these changes could lead to more pub closures, exacerbating the challenges faced by the hospitality sector. Despite the government's introduction of a £4.3 billion support package, industry leaders argue that it falls short of addressing the financial pressures on businesses.
Decline in Hospitality Venues
The hospitality sector has also seen a 13.6% decrease in the number of premises with alcohol licenses since the pandemic, according to UKHospitality and research consultancy CGA. This decline underscores the ongoing difficulties faced by the industry, as businesses grapple with the cost-of-living crisis and inflationary pressures.
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Scenario Analysis
The future of the UK hospitality sector remains uncertain as it navigates the challenges posed by rising costs and changing business rates. If the government does not address these concerns, the sector could see further job losses and venue closures, impacting local communities and economies. Industry leaders may continue to lobby for policy adjustments, particularly concerning business rates, to ensure the survival of small businesses and the preservation of employment opportunities. As the situation evolves, the government's response will be crucial in determining the sector's resilience and recovery.
The UK hospitality sector is bracing for a potential loss of 100,000 jobs following recent government budget announcements, according to UKHospitality. The trade body attributes this risk to increases in the minimum wage, the introduction of a tourist tax, and changes to business rates. These developments could significantly impact youth employment, as young workers constitute a large portion of the hospitality workforce.
Impact on Youth Employment
Allen Simpson, CEO of UKHospitality, expressed concerns about the rising costs of employing young people, which could hinder their ability to gain essential skills. The latest figures from the Office for National Statistics (ONS) reveal that 702,000 individuals aged 16 to 24 are currently unemployed, marking an increase of 60,000 from the previous year. Saif Miah, a 23-year-old job seeker from West London, shared his struggles in securing a position in the hospitality industry, highlighting the emotional toll of repeated rejections.
Business Rate Concerns
In a parallel development, the Society of Independent Brewers has called on the government to reconsider business rate changes, which they argue could be detrimental to pubs and small brewers. The organization warns that these changes could lead to more pub closures, exacerbating the challenges faced by the hospitality sector. Despite the government's introduction of a £4.3 billion support package, industry leaders argue that it falls short of addressing the financial pressures on businesses.
Decline in Hospitality Venues
The hospitality sector has also seen a 13.6% decrease in the number of premises with alcohol licenses since the pandemic, according to UKHospitality and research consultancy CGA. This decline underscores the ongoing difficulties faced by the industry, as businesses grapple with the cost-of-living crisis and inflationary pressures.
What this might mean
The future of the UK hospitality sector remains uncertain as it navigates the challenges posed by rising costs and changing business rates. If the government does not address these concerns, the sector could see further job losses and venue closures, impacting local communities and economies. Industry leaders may continue to lobby for policy adjustments, particularly concerning business rates, to ensure the survival of small businesses and the preservation of employment opportunities. As the situation evolves, the government's response will be crucial in determining the sector's resilience and recovery.
