Tax rises killing off pub summer holiday jobs, warn bosses

Telegraph

2 days ago

It's a been rite of passage for university students for decades. But now Rachel Reeves's tax raid risks killing off the traditional pub summer holiday jobs amid a sharp slump in hospitality vacancies, bosses have warned.
Job openings in the hospitality sector - which includes pubs and restaurants - fell by over 22,000 in June compared to the same month a year earlier, according to figures from the Recruitment and Employment Confederation (REC).
Industry groups have warned the sharp drop risks 'the death of the great British summer job' as students finishing up college and university struggle to find work behind the bar during their holidays.
Britain's pubs and restaurants have long been a source of temporary work for thousands of students across the country. It adds to the mounting worries for young people who are facing a challenging labour market this summer.
Neil Carberry, the chief executive of REC, said the fall in vacancies was a 'red flag' for the wider UK economy.
'Hospitality is one of the UK's biggest entry points into work, but right now, we are shutting people out before they even get a foot in the door,' he said.
Many hospitality businesses have put a freeze on hiring or cut jobs following Ms Reeves's tax raid in the autumn Budget, which increased the cost of employing staff by raising employers' National Insurance Contributions.
Mr Carberry said the decline in open roles 'puts recruiters, hospitality businesses and customers under massive pressure to make the most of the short-lived English summer'.
According to the trade body UKHospitality, the Chancellor's tax raid added £3.4bn in costs to hospitality businesses.
Around 84,000 jobs have been lost in the sector since last year's autumn Budget as companies attempt to shed workers following the rise in labour costs.
The jobs fall comes at a time when the British tourism industry is booming, with visitors making the most of a warm start to the summer.
Spending on day visits by tourists in England climbed to £48.4bn in 2024, up 6pc from a year earlier. According to the latest monthly figures, Britons went on 68.6m trips within the UK in April, a 10pc increase from the same month in 2023.
Despite the strong visitor numbers, the hospitality and tourism sectors have been left grappling with mounting costs following last year's autumn Budget.
Allen Simpson, the chief executive of UKHospitality, said the decline in vacancies was 'sadly reflective of the impact we have seen from increased costs over the past nine months – less employment, less opportunity and less growth in the economy'.
The warnings over hospitality roles came as figures released by the Office for National Statistics earlier this month revealed that the number of jobs advertised across the country fell to 727,000 in the three months to June, down from 783,000 for the previous three-month period.
Mr Simpson called on the government to 'reverse the damage' facing the hospitality industry.
'That starts with fixing NICs, lowering business rates and cutting VAT for hospitality businesses,' he said.
The hospitality industry has borne the brunt of the Chancellor's tax raid.
Earlier this month, the British Beer and Pub Association warned that one pub a day would shut across Britain this year as publicans battle surging costs, including Ms Reeves's £25bn National Insurance raid and an increase in the minimum wage.
The Treasury was contacted for comment.