Pubs and restaurants in the UK will face an additional £1 billion in annual costs due to National Insurance rises, according to a report by trade body UKHospitality. The tax increase, which will take place in April 2023, will force establishments to cut jobs and hours, as well as freeze investments and increase prices. London will be the hardest hit, with a predicted £284.7 million extra cost, followed by the South East, South West, North West, and Scotland. UKHospitality chief Kate Nicholls is urging Chancellor Rachel Reeves to “perform a Christmas miracle” and scrap the rise. The organization also warns that eight out of ten establishments will be forced to cut jobs and hours, and nine out of ten will freeze investment and increase prices. The Treasury has defended the decision, stating it was made to ensure stability in the public finances and no change to working people’s pay.
