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Hospitality Industry: Employment

Asked by Damien EganLabourTreasuryTabled Answered 13 October 2025UIN 77198

The question

To ask the Chancellor of the Exchequer, what steps her Department is taking to support the hospitality sector with increased employment costs.

Answered by Dan Tomlinson

The Government is committed to supporting the hospitality sector across the UK.

The UK hospitality sector is largely made up of small businesses. The Government has protected the smallest businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year.

To reduce wider burdens for the hospitality sector, we have also established the Licensing Taskforce and will call for evidence on a National Licensing Policy Framework which will set out national direction for licensing authorities to consider economic growth and cultural value. In addition, the English Devolution Bill will protect businesses from upward only rent clauses, and we are introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets.

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