Almost 89,000 jobs lost in hospitality since Budget as another 5,000 go in past month: Almost 89,000 jobs have been lost in hospitality since last October’s Budget, according to new analysis of Office for National Statistics data by UKHospitality. The sector has accounted for 53% of all 164,641 job losses in the UK since the Budget. The 89,000 job losses in the sector is an increase of 5,000 on last month. The scale of job losses is three times worse than estimated by the Office for Budget Responsibility, which predicted 50,000 job losses as a direct result of changes to employers’ national insurance contributions. The analysis also revealed one in 25 jobs in hospitality have been lost – representing 4.1% of all jobs in the sector, and the percentage of job losses within hospitality, as a proportion of its total workforce, is seven times larger than the rate of the wider UK economy. This new analysis is a further illustration of the regressive nature of changes to employers’ national insurance contributions, in particular the lowering of the threshold, UKHospitality said, adding these changes have directly hit part-time and flexible jobs. UKHospitality is calling for urgent action at the Budget this autumn, with the government needing to lower business rates, fix national insurance contributions and cut VAT “to stop hospitality businesses being taxed out and to reverse the damage done by increased taxes”. Kate Nicholls, chair of UKHospitality, said: “The number of job losses suffered in hospitality since the Budget is staggering. More than half of all job losses since October occurring in hospitality is further evidence that our sector has been by far the hardest hit by the government’s regressive tax increases. The sheer scale of costs being placed upon hospitality has forced businesses to take agonisingly tough decisions to cut jobs – with part-time and flexible roles often those most at risk. At a time when the country needs jobs, the government should be encouraging hospitality to grow and create jobs, not tax them out of existence. The government needs to recognise the devastating impact of its tax increases on working people and communities across the country.”

Loungers chair Alex Reilley quits Labour taskforce over chancellor’s tax raid: Alex Reilley, the chair of café bar operator Loungers, has quit a Labour government taskforce after coming under pressure from civil servants for speaking out against chancellor Rachel Reeves’ tax policies. Reilley has stepped down from the Hospitality Sector Council (HSC) after warning the government was “condemning high streets and town centres and consigning them to the trash”. Reilley said he faced pressure from civil servants for publicly criticising Reeves’ policies while on the council, which is intended to give the sector a voice in Westminster. He told The Telegraph: “I was critical of the government, which it didn’t like because its view is ‘well hang on, you’re on the inside now and you can’t be publicly criticising what the government is doing’. Well, I’m going to publicly criticise when I feel that criticism is justified, and so I took the view that I wasn’t prepared to stop speaking my mind.” Reilley joined the HSC earlier this year to lead a group focusing on regenerating Britain’s high streets. While he still supports the HSC and his fellow hospitality bosses, he said the government was not taking business leaders’ concerns seriously enough. He added: “The issue that we all recognise, perhaps with the exception of the government, is there is absolutely no incentive for anyone to get out of bed in the morning and open their own business in hospitality. Why would you? Why would anyone risk their hard-earned savings to open what would potentially have been their dream, in an environment where everything is being taxed out of existence? We’re seeing more and more single site operators throwing in the towel, but also restaurant and pub groups going through a process of restructuring, which is seeing premises closed and jobs lost. Without wishing to sound like the merchant of doom, I think this is just the start.” A government spokesman said: “Reilley’s departure from the council was mutually agreed. We work closely with the HSC to ensure the views of industry are heard as we revitalise the sector. We’ll continue to listen to industry leaders as we take bold action to renew our high streets in the Plan for Change.” Loungers features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club subscribers and features 1,151 companies. Loungers’ turnover of £353,486,000 for the year ending 21 April 2024 is the 37th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Criminals face pub, club and football bans under Sentencing Bill: Judges will be able to ban criminals from football matches, pubs and concerts under tougher sentencing reforms. The Sunday Times reported that the greater use of banning orders will apply to convicts on probation after being released from prison and those handed non-custodial sentences, such as community orders. The changes are being implemented in the Sentencing Bill, which will be introduced to parliament next month. Justice secretary Shabana Mahmood wants bans on social activities to become much more mainstream, arguing that they restrict criminals’ liberty throughout their sentence. Her reforms will also expand the use of mandatory drugs testing: the probation service will conduct checks on offenders after release irrespective of whether they have a history of substance abuse. The Bill will also contain measures to prevent a repeat of the prison overcrowding crisis last summer. They include cutting the time less serious offenders must serve in jail to a third of their sentence, while moving away from custodial sentences for those sentenced to less than 12 months. Mahmood said: “When criminals break society’s rules, they must be punished. Those serving their sentences in the community must have their freedom restricted there too. These new punishments should remind all offenders that, under this government, crime does not pay.”