The failure to address changing employer National Insurance Contributions will stifle employment in critical sectors like hospitality.
UKHospitality said that the lack of a clear growth plan for hospitality puts high street jobs at risk.
It called for the Government to urgently bring forward a plan that allows hospitality to unlock growth and jobs, for everyone, everywhere.
Our response
Kate Nicholls, Chief Executive, UKHospitality
Kate Nicholls, Chief Executive of UKHospitality, said: “Growth won’t just happen without a plan. Today’s statement was yet another missed opportunity to avoid an April cliff edge, which will level a devastating £3.4 billion annual increase to the sector’s tax bill.
“The Government’s own analysis shows the failure to address the employer NICs threshold will force businesses to freeze recruitment, reduce hours available for staff and reduce employment levels in the very sectors the Government needs to achieve its goal to get people off welfare.
“If the Government is serious about getting Britain working, it needs hospitality. When we were backed after the financial crash and the pandemic, we proved how we can help drive economic recovery.
“Our new research this week proves that hospitality and the foundation economy are essential to the Government’s plan to create jobs where they’re needed, not just in clusters in the South East.
“There is still time for the Chancellor to act and avert this disaster. Now is the time to back hospitality, delay the changes to employer NICs and work with us to bring forward a plan for the high street that can deliver socially productive growth and opportunities to get people back into work.”
