Two-thirds of UK hospitality businesses plan to cut jobs and one in seven will close, survey finds

Changes in business rates, increases in minimum wage thresholds and shock waves from the war in the Middle East are ‘suffocating’ the hospitality sector, industry associations said Photograph: Matthew Childs/Reuters

Two-thirds of hospitality businesses are planning to cut jobs as a result of “suffocating” costs imposed by government, as new business rates and higher wage bills come into force.

Many pubs, restaurants and hotel companies will see their costs increase significantly from 1 April after Rachel Reeves’s changes to business rates and an increase in minimum wage thresholds announced at the chancellor’s November budget.