Representative ImageThe UK hospitality sector has seen a significant reduction in employment, with 8,784 fewer people working in December 2025 compared to November 2025, according to the Office for National Statistics. This decline comes despite the sector typically increasing staff numbers for the festive season. The figures highlight the ongoing challenges faced by the industry, exacerbated by changes to employer National Insurance Contributions (NICs) and rising employment costs.
The sector has been hit hard by successive Budgets that have increased the cost and tax burden, with businesses bracing for further challenges as business rates are set to rise in April. UKHospitality is calling for urgent government intervention to mitigate these increases, advocating for a maximum 20p business rates discount for hospitality properties.
Allen Simpson, Chief Executive of UKHospitality, expressed concern over the situation: “Hospitality is being hit by costs at every angle and it is the cumulative effect of this growing tax burden that is resulting in the number of people employed in hospitality continuing to fall.”
Simpson further noted that the sector was already burdened with £3.4 billion in additional annual costs less than a year ago, and now faces further increases in business rates. He warned that without urgent government action, job losses and business closures are likely to accelerate.
The data from the Office for National Statistics shows a steady decline in employment within the sector, with 20,014 fewer people employed in December 2025 compared to September 2025. As the third largest employer in the UK, the hospitality sector's struggles could have significant implications for the broader economy.
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