UK hospitality warns of strain due to NIC changes

LONDON, Nov. 11 (Xinhua) — British hospitality leaders have raised alarm over rising costs following the latest Budget, expressing concerns in an open letter to Chancellor Rachel Reeves.
Leaders from UKHospitality, the industry’s leading trade body, highlighted the impact of changes to Employer National Insurance Contributions (NICs) and the national minimum wage increase, estimating that these adjustments will add approximately 3.4 billion pounds (4.38 billion U.S. dollars) in annual costs to the sector.
The letter, dated Nov. 9, argues that the raised NIC threshold disproportionately impacts lower earners and could limit flexible work options. As the hospitality industry employs large numbers of part-time and lower-wage workers, the NIC changes will bring many of these employees into NIC contributions for the first time.
According to the estimates provided, a high earner making 100,000 pounds would see a 13.6 percent NIC increase, while an employee earning 25,000 pounds would face a 36.7 percent rise, and a part-time worker on minimum wage could experience a 74.5 percent increase.
The leaders warned that these higher costs could slow wage growth for lower earners, making some minimum-wage roles financially unsustainable. (1 British pound = 1.29 U.S. dollar) ■