Over 50% of job losses since the Chancellor's tax raid have been in the hospitality sector. (Image: Getty)
Rachel Reeves has been blamed for decimating the hospitality sector with a staggering 90,000 job losses in less than a year. According to trade group UKHospitality, that figure accounts for 53% of the 165,000 roles that were cut across all industries since the Chancellor's Autumn Budget.
It equates to losing one in 25 jobs in pubs, bars, hotels, cafes, and restaurants - a worse outcome than the 50,000 losses predicted by the Office for Budget Responsibility. This comes after Ms Reeves increased National Insurance contributions (NIC) from 13.8% to 15% and cut the annual earnings threshold at which it kicks in from ￡9,100 to ￡5,000. Kate Nicholls, chairman of UKHospitality, said the "staggering" figures showed the hospitality industry was the hardest hit in the country "by far".
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Almost 90,000 jobs have been lost in the hospitality sector. (Image: Getty)
She 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.
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"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."
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A popular London pub chain has also added an additional 4% service charge to drinks bought at the bar following the NIC increase.
The Well & Boot in Waterloo station has applied the "optional" yet automatic levy onto their food and drink in a bid to offset the higher taxes.
This means the cost of a pint of beer or cider will automatically rise by 30p, unless the customer asks to remove the cost. A pint of a Camden IPA at the pub is ￡7.65, so the cost rises to ￡7.95 if the 30p is added.
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The venue informs customers of the fee on a small sign at the bar.
The branch in the busy London station is one of nine Glendola Leisure pubs in the capital to apply the surcharge, with The World’s End in Camden and The Fox in Shoreditch also adding the service charge.
A Government spokesman said: "Pubs, cafes and restaurants are vital to local communities, that’s why we’re cutting the cost of licensing, helping more pubs, cafes and restaurants offer pavement drinks and al fresco dining, and extending business rates relief for these businesses – on top of cutting alcohol duty on draught pints and capping corporation tax."
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