"The steep rise in hospitality wages to a record high will come as a big concern to the sector, particularly following a prolonged period of subdued sales. This puts more pressure on margins, with every £1 increase in wages also leading to additional employers' NIC, resulting in a double whammy on operators' costs."
"After bearing the brunt of this year's tax rises, the sector is calling out to the government for bold, meaningful support measures in the budget. Operators will also be hoping the budget gives consumers a spring in their step, so they feel confident enough to part ways with their money, particularly in the lead up to the important Christmas season."
Average weekly earnings in accommodation and food services reached a record £357.05 in August 2025, up from £346.52 the previous month and up 6.4% year‑on‑year. Payrolled employees rose from 2,085,155 in August to 2,111,295 in September 2025, while food and accommodation vacancies fell from 78,000 to 74,000. Steep wage increases add pressure to already tight margins and raise employers' National Insurance costs, amplifying operator expense. Employment rose for the first time since April 2025, suggesting cautious rehiring, and the sector seeks meaningful budget support and hopes for a consumer spending uplift ahead of Christmas.
Read at London Business News | Londonlovesbusiness.com
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