Two-thirds of UK hospitality businesses plan to cut jobs and one in seven will close, survey finds

Sector cites ‘billions of pounds in additional costs’ from new business rates and increase in minimum wage thresholds Two-thirds of hospitality businesses are planning to cut jobs as a result of “suffocating” costs imposed by government, as new business rates and higher wage bills come into force. Many pubs, restaurants and hotel companies will see their costs increase significantly from 1 April after Rachel Reeves’s changes to business rates and an increase in minimum wage thresholds announced at the chancellor’s November budget. An industry-wide survey of 20,000 hospitality businesses has found that as a direct result of the cost increases, 64% of firms plan to cut jobs, 42% intend to reduce trading hours and one in seven will be forced to close. “Hospitality businesses enter April facing billions of pounds in additional costs, which will force many to make heartbreaking decisions,” said bodies including UKHospitality and the British Beer and Pub Association, in a joint statement. “Hospitality’s tax burden – the highest in the economy – is suffocating the sector. The impact is clear: more lost jobs, less investment and business closures.” UKHospitality has estimated that increase