Night-time industry warns Reeves tax policies driving young people out of work - London Business News | Londonlovesbusiness.com

Rising employment costs and government tax policy are linked to higher youth unemployment by discouraging businesses from hiring younger workers. National Insurance Contributions increases and broader operational pressures make recruitment harder for hospitality and entertainment venues. Entry-level roles that typically provide a route into employment for young people are being squeezed as staffing costs rise and margins weaken. Night-time economy venues face particular exposure because they rely on flexible staffing, late-night trading, and high customer turnover. The pressures fall most heavily on roles likely to be filled by younger workers, leading operators to reduce hiring, cut hours, or delay expansion plans.

"The Night Time Industries Association has warned that government tax policy and rising employment costs are directly contributing to higher youth unemployment by discouraging businesses from hiring younger workers. The trade body, which represents one of the UK's largest employers of 18 to 30-year-olds, said increases in National Insurance Contributions alongside broader operational cost pressures have created an environment in which recruitment has become increasingly difficult for hospitality and entertainment venues."

"The warning adds to growing concern within parts of the hospitality sector that entry-level jobs - traditionally a key route into employment for young people - are being squeezed out as businesses grapple with higher staffing costs and weaker margins. According to the association, venues operating in the night-time economy are particularly exposed, given their reliance on flexible staffing models, late-night trading and high-volume customer turnover."

"It argues that recent tax and wage pressures are disproportionately affecting precisely the types of roles most likely to be filled by younger workers. Industry leaders say the combination of higher employer National Insurance contributions and increased wage bills has forced many operators to reduce hiring, cut hours or delay expansion plans."

"Michael Kill, CEO of the Night Time Industries Association, said: "This government has created its own youth unemployment crisis through a tax system that is fundamentally not pro employment and certainly not pro youth employment. "The night-time economy has historically been one of the largest employers of young people in the UK, providing essential first jobs, flexible work, training opportunities and long-term careers across hospitality, leisure, live events and entertainment. Yet businesses are now being punished for employing people.""

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