Hospitality sector struggling without support

The UK hospitality sector’s workforce and contribution to the economy could begin to drop by 2022, according to research by Ignite Economics.

The report notes that recent cost pressures such as minimum wage increases, business rates, and a reduction in the supply of labour has started to take its toll on the industry.

In the least optimistic “bear case” scenario, the report suggests there could be 312,000 fewer people directly employed in the sector compared to 3.2 million in 2017. The economic contribution the sector makes would also start to fall from its current level of £79 billion.

However, with government support employment could grow by 66,000 to reach an employment workforce for 3.5 million and an economic contribution of £89 billion in the next four years.

This week, 150 hospitality business from across the UK assembled at Westminster to meet with over 60 MPs to champion the sector’s contribution to the high street.

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