The failure to address changing employer National Insurance Contributions in this week’s Spring Statement will stifle employment in critical sectors like hospitality, say UKHospitality who said that the “lack of a clear growth plan for hospitality puts high street jobs at risk.”
The industry body has called for the Government to urgently bring forward a plan that allows hospitality to unlock growth and jobs, “for everyone, everywhere”.
Kate Nicholls, Chief Executive of UKHospitality, said, “Growth won’t just happen without a plan. Today’s statement was yet another missed opportunity to avoid an April cliff edge which will level a devastating £3.4 billion annual increase to the sector’s tax bill.
“The Government’s own analysis shows the failure to address the employer NICs threshold will force businesses to freeze recruitment, reduce hours available for staff and reduce employment levels in the very sectors the Government needs to achieve its goal to get people off welfare.
“If the Government is serious about getting Britain working, it needs hospitality. When we were backed after the financial crash and the pandemic, we proved how we can help drive economic recovery.
“Our new research this week proves that hospitality and the foundation economy are essential to the Government’s plan to create jobs where they’re needed, not just in clusters in the South East.
“There is still time for the Chancellor to act and avert this disaster. Now is the time to back hospitality, delay the changes to employer NICs and work with us to bring forward a plan for the high street that can deliver socially productive growth and opportunities to get people back into work.”
Michael Kill CEO, Night Time Industries Association said, “The Night Time Industries Association (NTIA) is outraged by the Chancellor’s latest Statement—a reckless dereliction of duty that blatantly disregards the night-time economy’s desperate need for support.
“Once again, the Government has ignored the mounting evidence of economic devastation in our sector, doubling down on disastrous fiscal policies instead of taking decisive action to foster genuine growth and stability.
“Despite repeated warnings and relentless lobbying to reverse the crippling measures introduced in the Autumn Statement, the Government has chosen inaction, condemning businesses to a bleak and uncertain future. Rather than seizing the opportunity to implement critical long-term reforms, this Statement signals yet another nail in the coffin for an industry already pushed to the brink.
“With crushing tax hikes set to take effect in April, the night-time economy now faces a worsening crisis that threatens widespread closures, mass job losses, and economic stagnation. The Chancellor’s failure to introduce meaningful financial relief is not just negligent—it is a direct attack on the viability of an industry that contributes billions to the UK economy.
“The night-time economy is at breaking point. For years, our businesses have endured relentless financial strain, yet the Government continues to dismiss our calls for intervention.
“This deliberate neglect exposes a fundamental disregard for the millions of workers and entrepreneurs who fuel the UK’s cultural and economic dynamism. The absence of targeted support is nothing short of a betrayal, leaving businesses to fend for themselves in an increasingly hostile environment.
This Statement could have marked a turning point—a moment for the Government to acknowledge its failures and finally take action to protect industries that are vital to economic recovery. Instead, it is another damning indictment of the Government’s lack of vision, leadership, and competence. The refusal to enact real change or provide the necessary safeguards for our sector is an unforgivable abdication of responsibility.
“The NTIA demands immediate and substantial intervention. We will not stand by while our industry is systematically dismantled by political negligence. The time for excuses and empty promises is over. The Government must act now—before it is too late.”
Responding to the Chancellor the Exchequer’s Spring Statement, Stephen Montgomery, Director of the Scottish Hospitality Group, said, “This statement does absolutely nothing to support the hospitality sector in Scotland or across the UK.
“In fact, the Chancellor did not even mention the hospitality industry once in her statement despite speaking for more than half an hour.
“The reality is hospitality businesses up and down the country are facing a tax bombshell next week of nearly £3.5B, and the Chancellor of the Exchequer’s statement has done nothing to allay the danger of job losses and closures across the nation’s pubs, hotels, and restaurants.
“The hospitality sector is increasingly losing confidence in the Chancellor of the Exchequer – it will only be regained if she finally listens, acts and helps the hospitality industry to grow and thrive. Our door remains open for talks, and the Chancellor can still do the right thing, and reverse the NIC rise ahead of the April cliff edge”