April cost increases ‘could force 65% in hospitality to cut jobs’

As many as two in three hospitality businesses in the north fear they will be forced to reduce their employment levels, risking job losses and lost income for workers come April.

And they are again urging the government to delay employer changes to the employers’ national insurance threshold so that hospitality can continue to boost the economy.

Trade associations Hospitality Ulster, The British Beer and Pub Association, the British Institute of Innkeeping, and UKHospitality have united to highlight the strong record the sector has in delivering economic growth, with hospitality one of the top contributors to GDP growth in November and December 2024.

A UK-wide survey of the hospitality sector (61 business were sampled in Northern Ireland_ has revealed how it fears it will be drastically affected by new employment costs and also the reduction in rates relief from April.

In a joint statement, the trade bodies said: “Our findings should serve as a clear warning that pubs, brewers, and hospitality venues will be forced to make painful decisions to weather these new costs, which will have damaging impacts on businesses, jobs and communities.

“At a time when hospitality has been one of the top contributors to economic growth, the last thing the government should be doing is piling on costs that will impact employment and cut off our ability to grow.

“We want to work with government so we can continue to vitally boost the economy, which is why we urge them to delay the changes to the employer NICs threshold. This would help save jobs and allow the sector to continue on its growth path.”

Colin Neill, chief executive at Hospitality Ulster, said: “The results of this survey confirm what we’ve been telling politicians for years now: that the conditions in which hospitality businesses are being forced to operate will result in closures and the loss of employment.

“This should be the final warning for elected representatives that the upcoming changes will be a body blow for many hospitality businesses, and it will be especially felt in Northern Ireland, where the sector is the fourth largest employer in the private sector and the backbone of our tourism industry.”