Zarah ChoudharyUKHospitality is calling on the Government delay changes to employer National Insurance Contributions (NICs), as they could cost the hospitality industry £1bn.
This is due to the high number of employees working part-time or flexibly, according to UKHospitality.
Currently, more than 1.2 million hospitality staff are not eligible for employer NICs.
In April, that number will be reduced to just over 450,000 people.
Alternatives have been put forward to the Government, in the form of a new rate of employer NICs at 5%, rather than 15%, for earnings between £5,000 and £9,100, or a lower rate for lower-earning taxpayers who work part-time.
Kate Nicholls, chief executive of UKHospitality, said: “The change to employer NICs is one of the most regressive tax changes ever.
“The scale of this change is unprecedented, bringing three-quarters of a million people into this employer tax for the first time, and the extent of the impact will be enormous.
“This tax is already forcing businesses to abandon investment, change recruitment plans, reduce headcounts and increase prices to cope with these cost increases.”
She added: “At a time when we saw hospitality as the biggest driver of economic growth in November, it’s completely misguided to be punishing a sector that has such growth potential.
“I hope the Government can see the devastating impact this will have on businesses, team members and communities, and pause these changes to pursue alternative measures, in partnership with business.”
