Two-thirds of hospitality businesses may cut jobs due to significant tax increases, according to a survey of over 20,000 firms. The changes, including higher minimum wage rates and increased business rates, will add £1.4bn annually to costs. Many firms plan to cancel investments and reduce trading hours. It was shown that 64% plan to cut jobs, 42% intend to reduce trading hours and one in seven will have to close. More than half (51%) said they would cancel investment plans. Trade associations including UKHospitality and the British Beer and Pub Association have urged the Government to reverse tax hikes, saying: “Yet again, hospitality businesses enter April facing billions of pounds in additional costs, which will force many to make heartbreaking decisions.” They added that even before the conflict in the Middle East began, “increasing energy prices were already impacting profitability and the Government should be prepared to support vulnerable businesses if they are thrown into yet another crisis.”
