Tax raids 'doing as much damage to hospitality sector as lockdowns'

The hospitality industry faces Covid-like job losses and closures as it reels from Labour’s tax hikes, an industry leader has warned.

Some 89,000 jobs have been axed in restaurants, bars, pubs and hotels since Rachel Reeves’ Budget last October, according to analysis of official figures by UK Hospitality.

That accounts for 53 per cent of all job losses in the UK, the group said.

It blamed the Chancellor’s £25billion National Insurance tax raid on employers as well as an inflation-busting increase in the minimum wage.

UK Hospitality chief Kate Nicholls said the industry was now facing Covid-style decimation when lockdowns resulted in venues closing and jobs being lost.