More than two-thirds of hospitality firms to reduce staff
More than two-thirds of hospitality businesses will reduce their staffing levels due to an increase in employer national insurance that comes in in April.
A survey by the British Beer and Pub Association, the British Institute of Innkeeping, Hospitality Ulster and UKHospitality found that 70% expected to cut headcount due to rising employment costs.
Sixty per cent of those polled said they would cancel planned investment, and the trade bodies are urging the government to postpone the NIC rise, which was announced in October’s Budget.
Almost a third (29%) said they would reduce trading hours as a result of the extra costs, and 25% said they no longer had any cash reserves. Fifteen per cent said they would have to close at least one site for their business to survive.
“At a time when hospitality has been one of the top contributors to economic growth, the last thing the government should be doing is piling on costs that will impact employment and cut off our ability to grow,” the trade bodies said in a statement.
by Jo Faragher