UKHospitality responds to National Minimum Wage and National Living Wage increase

The increase will add to the significant cost pressures facing hospitality businesses, affecting their ability to invest, create jobs and drive growth.

Allen Simpson, Chief Executive of UKHospitality, said: “Hospitality businesses recognise the importance of ensuring teams are fairly rewarded and our sector is proud to provide jobs and career opportunities for millions of people across the UK.

However, a 3.9% increase in the National Minimum Wage and National Living Wage will add further pressure for hospitality businesses already grappling with substantial increases in costs. For a labour-intensive sector like hospitality, wage increases of this scale represent a considerable additional burden that many businesses will struggle to absorb.

“This announcement makes it even more important that the Government uses the Budget to back hospitality businesses by reducing the sector’s tax burden. Without action to address mounting cost pressures, operators will have less capacity to invest, create jobs and drive growth in communities across the country.”