Cornwall icon Rick Stein hit by Reeves's tax hike as hospitality jobs vanish

"Directors said the outlook "remains challenging," blaming Reeves's decision to increase employer National Insurance contributions and cut the payment threshold. They warned that the "service-led nature" of hospitality meant the sector was being "severely impacted" by higher staffing costs, with nearly 90,000 hospitality jobs already lost nationwide since the October Budget."

"Because the economy is not looking too good, people aren't going out as much, so the one thing you don't want to do is impose a heavy tax on the sorts of industries that are actually producing stuff."

"Hospitality is a people-first industry, and we are proud to employ so many talented professionals. The Chancellor needs to ease our financial pressures in the autumn Budget to prevent further job losses and support the recovery of the hospitality industry."

The Seafood Restaurant (Padstow) recorded £18.9m in revenues last year, down £1.3m, while pre-tax losses widened to £459,000. Group-wide sales fell 5.4% to £30.4m. The group employs 355 staff, making it one of Cornwall's largest private employers. The outlook is described as challenging, with increased employer National Insurance contributions and a reduced payment threshold cited as driving higher staffing costs. Hospitality faces pressure from rising food, energy and commodity costs, falling customer numbers and the wider cost-of-living crisis. Nearly 90,000 hospitality jobs have been lost nationwide since the October Budget.

Read at Business Matters