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UK: Allen Simpson, chief executive of UKHospitality, said that a 3.9% increase in the national minimum wage and national living wage will add further pressure for hospitality businesses.
He added that while hospitality businesses recognise the importance of providing jobs and ensuring teams are fairly rewarded, wage increases of this scale will represent a considerable additional burden for a labour-intensive industry like hospitality. Furthermore, businesses already grappling with substantial increases in costs will feel this impact the most.
“This announcement makes it even more important that the government uses the budget to back hospitality businesses by reducing the sector’s tax burden,” Simpson said. “Without action to address mounting cost pressures, operators will have less capacity to invest, create jobs and drive growth in communities across the country.”
Highlights:
- UKHospitality chief executive Allen Simpson has warned that a 3.9% increase in the UK national minimum wage and national living wage will add further cost pressures for hospitality businesses, a labour-intensive sector that relies heavily on its workforce.
- The wage increase will create an additional financial burden for hospitality operators, according to Simpson, particularly for businesses already facing substantial increases in operating costs.
- UKHospitality recognises the importance of fair pay and supporting jobs, while warning that businesses will struggle to absorb higher wage costs without further action to address wider financial pressures.
- Simpson has called on the UK government to use the Budget to reduce the hospitality sector’s tax burden, arguing that targeted support is needed to help businesses manage rising costs.
