UK Hospitality Job Losses: Industry Faces 170,000 Roles Gone in 13 Months

A new analysis from The Spirits Business, based on UKHospitality’s review of Office for National Statistics (ONS) data, reveals that UK hospitality job losses have reached 170,000 since the autumn Budget of October 2024. The trade group also reports that 64,000 of those roles disappeared in just the past two months—a pace it describes as “unprecedented.”

UKHospitality argues that the decline reflects “the social and economic damage caused by measures introduced last year,” particularly policy changes from then-new chancellor Rachel Reeves.

How Policy Decisions Accelerated UK Hospitality Job Losses

Reeves’ first Budget in October 2024 raised employer National Insurance contributions (NICs) by 1.2 percentage points beginning April 2025. UKHospitality attributes a sharp decline in part-time and flexible employment to those NIC increases, noting that the hospitality sector “has been disproportionately hit, accounting for more than half of all job losses across the economy.”

Beyond employment, the fallout has been wide-ranging. Businesses have cut hours, suspended investment plans, raised consumer prices, or shut down entirely. Kate Nicholls, chair of UKHospitality, called the figures a “shocking indictment of the damage caused by last year’s Budget,” in comments reported by The Spirits Business.

Industry Leaders Speak Out About UK Hospitality Job Losses

Nicholls argues that the government cannot revitalize high streets or boost employment without a healthy hospitality sector. In her words, as quoted by The Spirits Business: “If the government wants to get more people back into work… it needs hospitality firing on all cylinders, but right now we’re being taxed out.”

Ahead of the upcoming 26 November Budget, UKHospitality is advocating for three key interventions:

• Lower business rates
• Fixed employer NICs
• A VAT reduction for hospitality

According to Nicholls, these measures would “reverse some of the damage, protect jobs and allow hospitality to grow and prosper again.”

Broader Industry Trends Fuel UK Hospitality Job Losses

UKHospitality previously estimated in September that 111,000 roles could disappear before the next Budget—an outlook now surpassed by reality. Venue closures add to the strain: a report from the Night Time Industries Association found that one in four late-night venues has closed since 2020.

Sector-wide data reinforces the downward trend. NIQ reported a net decline of 374 licensed premises in the first half of 2025, a rate equivalent to 62 closures per month—more than two every day.

Business Failures Intensify UK Hospitality Job Losses

Several well-known operators have struggled under financial pressure. Simmons, a popular late-night cocktail chain, collapsed due to cashflow challenges. Its founder rescued the company in an £6 million (US$8.1 million) deal this August, though four sites shut down and 30 jobs were lost.

The parent company behind Revolution and Revolución de Cuba is also evaluating its survival options, including a potential sale. Meanwhile, BrewDog confirmed it would close 10 UK bars this year.

The Urgent Need to Reverse UK Hospitality Job Losses

As closures multiply and employment continues to fall, UKHospitality stresses that recovery depends on immediate government action. The November Budget remains a critical turning point for an industry navigating rising costs, shifting consumer behavior, and tightening economic conditions.

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Source of Information

The Spirits Business Article — UKHospitality: 170,000 jobs vanish in 13 months, written by Nicola Carruthers

The image of the article is courtesy of ©sturti via Canva.com