Big UK hospitality brands warn about massive job cuts due to new tax rules
More than 200 top UK hospitality companies sent warning letter to Chancellor about new employer tax changes. Industry leaders say tax-hike will force business closures and job-cuts starting next spring
Over 200 big-name hospitality companies sent a warning letter to Rachel Reeves about upcoming tax-rule changes thatʼll hurt their business. The group (which includes JD Wetherspoon‚ Whitbread‚ and Wagamama) says theyre facing hard choices about keeping venues open
The tax changes will push employer National Insurance up to 15% from 13‚8%; while lowering the payment threshold from £9100 to £5000 starting 04/2025. Industry experts say thisʼll cost hospitality businesses around £3‚4bn each year — a cost thats too high to manage
Treasury Chief Secretary Darren Jones made some straight-forward comments about the situation: big companies should deal with it. He thinks larger firms can handle these extra costs better; though the governments own budget office says these costs might end-up hitting workers paychecks
We recognise the fiscal and economic challenge that you face
The changes hit part-time workers extra-hard: minimum-wage staff face a 75% increase in NICs while £100k earners only see a 13‚6% jump. Industry leaders pointed out several key issues:
- Many part-time workers will pay this tax for first time
- Small venues might need to close
- Companies cant raise prices because customers already struggle
- Job cuts are likely to happen
The Treasury defended its position saying they inherited a £22bn budget gap and needed to make tough choices. They also mentioned some help is coming: high-street business rates will drop in 2026‚ plus theres a 40% relief next year for many places
