The UK hospitality sector has recently witnessed a sharp decline in workforce numbers, with 8,784 jobs lost in December 2025 compared to November 2025, as reported by the Office for National Statistics. This downturn is particularly surprising given the trend of increased hiring during the holiday season.

The industry faces persistent difficulties largely due to recent changes in the National Insurance Contributions (NICs) and growing employment costs. With imminent increases in business rates expected in April, UKHospitality is urging for swift government action to alleviate these burdens. They are advocating for a maximum 20p business rates discount for hospitality establishments.

Allen Simpson, the Chief Executive of UKHospitality, expressed concern about the compounded effect of rising costs: “Hospitality is being hit by costs at every angle, and this cumulative tax burden is causing a decline in employment within the sector.”

Moreover, he mentioned that the sector is already grappling with an additional £3.4 billion in yearly costs from less than a year ago, and further hikes in business rates could accelerate job losses and business closures.

According to the statistics, there was a notable decline of 20,014 jobs in December 2025 when compared to September 2025, underscoring the significant impact these challenges may have on the broader UK economy.