Latest news with #REC
Yahoo
8 hours ago
- Business
- Yahoo
Students hit as UK hotel jobs dry up this summer
The number of summer job vacancies in UK hotel and hospitality sectors has plunged this year, with a sharp 25% decline in postings as rising costs take their toll. The downturn is hitting students and young people hard, just as domestic tourism demand surges. Temporary hospitality hiring collapses Data from the Recruitment & Employment Confederation (REC) shows that unique hospitality job postings in June 2025 fell to 66,045, down from 88,414 in June 2024—equating to 22,369 fewer roles and a year‑on‑year drop of 25 %. Tourism‑related roles also dipped by 14 %, with 15,650 postings in June 2025 compared to 18,118 the previous year—2,468 fewer positions. Despite a 10 % increase in domestic day visits in England in April and a 6 % rise in tourism spend in 2024 to £48.4 billion, summer hiring has failed to keep pace. Drivers of the decline in hotel summer jobs The decline is largely attributed to rising employer costs, notably changes to National Insurance Contributions (NICs) introduced in Chancellor Rachel Reeves's 2024 budget. The NICs threshold was lowered and the rate increased, adding approximately £3.4 billion in annual cost to hospitality businesses. UKHospitality reports 84,000 roles lost since these policy changes took effect. Leaders warn that many establishments—pubs, hotels and restaurants—have scaled back staffing plans, with some facing reduced hours or closures. Impact on young workers and broader labour market Summer jobs in hotels and hospitality have long served as entry-level routes into the labour market for students and first-time workers. The plunge in vacancies threatens those opportunities. Neil Carberry, chief executive of the REC, described the drop as 'not just a staffing gap, it is a red flag for the wider economy'. With unemployment rising to 4.7 % in May 2025—the highest since mid‑2021—and evidence of weakening wage growth, hospitality has accounted for 45 % of recent job losses across sectors. Government response and industry appeals Industry voices are calling on the government to reverse the damage by revising NICs thresholds, cutting business rates and reducing VAT for hospitality firms. Allen Simpson of UKHospitality warned of the possible 'death of the great British summer job' unless action is taken in the upcoming Budget. Firms argue that without fiscal relief, flexible work opportunities for young people and seasonal staffing capacity for hotels and venues will be further eroded. "Students hit as UK hotel jobs dry up this summer" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
New Indian Express
17 hours ago
- Business
- New Indian Express
Telangana Minister Uttam urges REC to reduce interest on Rs 16K crore irrigation loans
HYDERABAD: Irrigation Minister N Uttam Kumar Reddy on Wednesday urged the Rural Electrification Corporation Limited to reduce interest rates and extend repayment tenure on the Rs 16,000 crore irrigation loans. The minister held a meeting with REC Chairman and Managing Director Jitendra Srivastava in Delhi. Special Chief Secretary of Finance Sandeep Kumar Sultania also participated in the discussions. During the meeting, the minister urged REC to consider reducing the interest rates on the existing loan portfolio and to increase the loan repayment tenure, which would provide the state with much-needed fiscal flexibility and breathing room to continue its developmental agenda without disruptions. Highlighting the strategic importance of irrigation infrastructure in Telangana's agrarian economy, the minister emphasised that easing the repayment conditions would not only help the state manage its finances more effectively but also enable timely completion of critical projects that directly impact lakhs of farmers. The CMD and senior officials of REC responded positively to the request and assured the minister that the corporation would sympathetically examine the proposal submitted by the Telangana government. The state government had borrowed approximately Rs 16,000 crore from REC for the execution of various large-scale irrigation projects aimed at ensuring water security for agriculture and rural development. However, the loans were sanctioned at relatively high interest rates and with shorter repayment cycles, which are now placing considerable strain on the state's financial resources. Seeks extension of repayment tenure During a meeting with REC CMD Jitendra Srivastava in Delhi, Irrigation Minister N Uttam Kumar Reddy also urged the corporation to extend repayment tenure, which he said would provide the state with much-needed fiscal flexibility to continue its developmental agenda.
Hans India
a day ago
- Business
- Hans India
TG seeks lower interest rates on REC loans
Hyderabad: The Telangana government on Wednesday poured out its financial woes before the Rural Electricity Corporation (REC) and urged it to lower interest rates on loans taken by the previous BRS government for the Kaleshwaram Lift Irrigation Project (KLIP). Irrigation Minister N Uttam Kumar Reddy met REC Managing Director Jitendra Srivastava in New Delhi and explained the mounting financial burden on the state government due to high interest rates on the loan availed by the previous government for KLIP. The then BRS government had borrowed Rs 16,000 crore from REC at high interest for irrigation projects, the irrigation minister said, adding that the Congress government has been facing a big difficulty to repay the loans with high interest rates. In some instances, the government could not repay loans due to paucity of funds and received notices from the REC, Reddy explained. REC, a Central government agency, has recently issued a notice to the state government for not paying the installment amount of Rs 1,393 crore towards loans borrowed by the Kaleshwaram Irrigation Project Corporation Limited (KIPCL) and Telangana State Water Resources Infrastructure Development Corporation (TSWRIDC). The REC also warned that loans availed by both the corporations would be declared NPAs (non-performing assets) if the state government failed to clear the dues. In a letter to Irrigation Secretary Rahul Bojja, REC Executive Director Jithin Kumar stated: 'There is a total overdue of Rs 1,393.65 crore of which Rs 319.74 crore and Rs 292.75 crore are critical dues of TSWRIDC and KIPCL, respectively. If dues are not cleared on or before June 28, it will lead to slippage of both accounts into the NPA category'. Furthermore, Jithin said both the borrower accounts were already classified as Stage-2 category under the Reserve Bank's NPA norms. This delay in serving the dues will have a negative impact on the financial record and rating of the utilities and the state, he remarked. At the time of availing the loan, the state government has agreed to repay the loan amount in monthly installments. Officials said that the REC already expressed serious concerns over the poor condition of the project after three barrages - Medigadda, Annaram and Sundilla - suffered damages. The delay in repayment will create more problems, they added. Responding to the Irrigation Minister's plea, the REC CMD said that the Centre will consider the state government's request and provide a relief from the burden of the payment of loans with high interest rates.
News18
4 days ago
- Business
- News18
REC gets certification for enterprise-wide risk management framework
Agency: New Delhi, Jul 28 (PTI) State-owned REC on Monday said it has received certification for its enterprise-wide risk management framework. REC has been certified with ISO 31000:2018 (Risk management – Guidelines), the company said in a statement. The official certificate was formally handed over to REC Chief Risk Officer Subrata Aich by Shripad Yesso Naik, Minister of State for Power. 'This significant achievement marks REC as the first Indian Public Sector Non-Banking Financial Company (NBFC) to receive this certification from the British Standards Institution (BSI)," it said. The ISO 31000:2018 is an internationally recognised standard that provides principles and guidelines for effective risk management. The certification signifies that REC has a structured, comprehensive, and internationally aligned approach to risk management, which will further enhance the confidence of all our stakeholders, including investors and lenders, Aich said. PTI ABI ABI SHW Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Telegraph
6 days ago
- Business
- Telegraph
Tax rises killing off pub summer holiday jobs, warn bosses
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.
