Hospitality Firms Concerned They May Have To Cut Jobs

There are real concerns within the hospitality sector in Northern Ireland that many firms will have to cut down on their staff members as cost increases loom on the horizon in April. In fact a recent survey by hospitality trade associations revealed that as many as 65% of the firms surveyed will have to reduce their staff numbers.

The major concern for these firms is the NIC payment threshold changes for employers which come into effect in April. Combine this with the reduction in rates relief and you have real pressures on many companies in the hospitality sector staying solvent. The sector is urging the government to delay the NIC changes so that they can deliver further economic growth, which of course is what Westminster is hanging its metaphorical coat on, but whether this call for assistance will be heeded is probably unlikely.

65% Of Hospitality Businesses To Cut Jobs

Here are some of the figures from this survey, as copied from an article on the Hello Rayo website. It states that:

‘. 65% of hospitality businesses in Northern Ireland will reduce their employment levels, risking job losses and lost income for workers.

• 55% would cancel planned investment.

• 26% will reduce trading hours.

• 28% have no cash reserves left, a dramatic increase from 15% in Q3 2024.

• 22% believe they will have to close at least one site.’

Firms Forced To Make Painful Decisions

The article also has a statement from the hospitality trade bodies which we copy below. It writes:

“These figures 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.

“If it doesn’t act then businesses are clear that the impact on communities, employees and supply chains will be significant. They have warned about potential lost earnings, lost jobs, reduced trading hours and, in some cases, business failure. This would mean the loss of essential community hubs that would otherwise drive the local economy and create jobs.

“Our message to Government is to delay its changes to the employer NICs threshold and allow hospitality to continue to deliver economic growth, regenerate our high streets and support local communities.”

The message may fall on deaf ears but for all concerned let us hope that they listen.