A coalition of hospitality sector businesses has urged the Chancellor to reduce the tax burden on the sector in this month’s budget or risk fuelling further job losses and cuts to investment.

Businesses including Greene King, IHG Hotels & Resorts, KFC UK & Ireland and Wagamama have signed a letter to Rachel Reeves, coordinated by UKHospitality, which describes the impact of last year’s budget as “socially regressive”. 

Over 80,000 sector jobs have been lost during the past year and nearly 6 in 10 hospitality businesses are pessimistic about the sector’s prospects over the next year, negatively affecting jobs and investment, the letter states.

It continues: “Many businesses have either closed or cancelled planned expansion. Young people and those who work part time have seen their opportunities narrow and the benefit bill has grown as a result. Towns and rural and coastal areas have been hit harder than the big cities due to the prevalence of hospitality. Consumer prices have risen.”

Businesses are calling for urgent action to help the sector when Reeves delivers her budget on November 26th. Specifically, they are urging the Chancellor to lower business rates, cut VAT on hospitality, and fix NICs (national insurance contributions) to boost jobs, through targeted support for employers hiring young people and those returning to work.

“The impact of the last budget was devastating,” said Kate Nicholls, chair of UKHospitality. “Business closures, job losses, curtailed investment, consumer price rises and lost opportunities for young people are all direct impacts of the choice made to inflict £3.4bn of additional annual cost on our sector. Without action, we will see these impacts continue and intensify.”