UKHospitality: Red alert

In my last column, I wrote about UKHospitality’s #TaxedOut campaign, which is already gathering support and momentum ahead of what will undoubtedly be a vitally important budget for our beleaguered sector. Among the key asks of government in #TaxedOut is to fix National Insurance Contributions (NICs). This will be of particular concern for contract caterers, especially as our most recent analysis has revealed the damage these additional costs are having on part-time and flexible work – summer job vacancies in hospitality are down 25% year-on-year.

Similarly of interest to caterers will be the government’s newly published 2025 remit for the Low Pay Commission (LPC), alongside an updated estimate for the National Living Wage (NLW) in April 2026 of £12.71-per-hour, up from the current £12.21. This is in line with the government’s long-standing target of two-thirds median earnings but remains subject to change based on labour market data later this year. It’s important to note that the projection is a range around the LPC’s central estimate, which runs from £12.55 to £12.86.

I gave oral evidence to the LPC earlier this year, while UKHospitality submitted detailed written evidence outlining the cost pressures and labour challenges facing the hospitality industry too. We’ve also been instrumental in arranging in-person visits and roundtables with LPC commissioners hosted by us across the UK, where our members have reiterated the impact the April 2025 NLW increase to £12.21 has had, including reducing hours and squeezing youth employment.

They also highlighted the cumulative pressures from employer NICs and wider cost inflation, and their concerns about the proposed convergence of the 18 to 20 age band with the main NLW. Members want the LPC to adopt a cautious and flexible approach, which is mindful of labour market fragility.

The fact is that across the board, labour market indicators are flashing red, with the Bank of England repeatedly voicing fears about a potential wage-price spiral fueling inflation. This would ultimately resulting in fewer people earning more, and many others facing job losses or reduced hours. Final recommendations are expected in October, ahead of an autumn budget announcement.

You can find out how to get involved in our #TaxedOut campaign on our website. A toolkit link there enables you to add your voice by writing to your MP, printing and displaying our poster in your venue(s), and/or promoting #TaxedOut via social media.

A quick word, too, about our Serving Britain: the future of food event, which will be held on Wednesday 3^rd September, at Six Park Place, London. Our inaugural food seminar will bring together experts from across hospitality, nutrition and the supply chain to share their insight, opinion and expert analysis on the direction the future of food will take.

We’ll also be launching our new guide, which is designed to be the go-to tool for how to deal with incidents that take place in a hospitality venue, whether that’s a loss of power, flooding or a hygiene or safety matter. We’ve worked closely with our partners at Food Alert to get the detail spot-on and practical for businesses.

Elements of the guide also has primary authority from Cornwall County Council, which means businesses that follow the advice set out can be confident they are complying with their legal requirements. The document will be recognised as the leading document governing incidents in hospitality, used by hospitality and local authority inspection staff alike. For full details and to book, please visit ukhospitality.org.uk/event/serving-britain-the-future-of-food.

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