THE hospitality industry has lost a further 5000 jobs in the last month, bringing the total to 89,000 jobs lost since the last UK Budget, according to a leading industry body.
The Scottish Hospitality Group, which represents a cross-section of hospitality operators, advocating for policies that protect jobs, businesses, and communities, said the job losses represent 53% of all UK jobs lost since the Chancellor’s Budget.
Rachel Reeves announced in her UK Budget last October that employers’ NICs would rise from 13.8% to 15% on salaries above £5000. The UK Government said the changes would eventually raise £25 billion a year.
The number of payrolled employees has decreased for all regions and countries of the UK, except for Northern Ireland where it has increased by 0.7%, when comparing July 2025 with the same period the previous year.
The hospitality sector in the UK employs more than 3 million people, making it one of the largest private sector employers, and the group has said the amount of jobs lost highlights the detrimental impact of the increase.
The Scottish Hospitality Group that “hospitality does not need warm words, closed-door committees, or PR driven taskforces,” and urged both governments to "start listening".
Hospitality representatives called for:
- Cuts to VAT for hospitality
- A reverse to the rise in employers’ National Insurance
- A fit for purpose NDR Policy for Licensed Hospitality in Scotland
Stephen Montgomery, director of the Scottish Hospitality Group, said: “Hospitality has reached the cliff edge, which is exactly as we have warned it would over the last five years. The question now is, when will Governments on both sides of the Border actually start listening?
“Hospitality should never be seen as a luxury. It should be an affordable pleasure for everyone, and part of the very fabric of our daily lives, but to make that a reality, Governments must step up, because only they have the power to create the conditions that allow our sector to thrive and survive.”
“Talking shops and closed-door committees are not the answer. We don’t need more warm words or tick box exercises. What we really need is real action, because in the end, actions will always speak louder than words.”
The group represents hundreds of restaurants, bars, restaurants, and leisure businesses including Signature Group, DRG Group, Buzzworks Eusebi Deli, Lisini Group, and McGintys Group.
