Tax hikes blamed for youth jobs crisis

Pub bosses warn young workers are being priced out

Britain’s pubs and hospitality businesses are sounding the alarm over rising youth unemployment, blaming higher employer National Insurance costs for making it harder to hire young workers. Industry leaders say the Government’s tax increases have added thousands of pounds to employment costs, forcing many businesses to freeze recruitment just as more than a million young people are looking for work, training or education opportunities. With youth unemployment climbing and hospitality jobs disappearing, pub bosses warn that Britain is heading towards a jobs crisis that could have serious consequences for the wider economy.

TAX HIKES “KILL OFF” YOUNG PEOPLE’S JOBS

Photo by Louis Hansel on Unsplash

Pub bosses are telling the Government to get a grip. They say the Government’s tax hikes are fuelling a youth unemployment crisis and pushing the country towards an “economic catastrophe”.

Hospitality leaders say Labour’s decision to whack up employer National Insurance has made it virtually impossible for pubs to hire young people who are the very workers who rely on bar jobs to get their first foot on the career ladder. With the number of young people Looking for education, employment and training opportunities at 1.1 million for the first time in decades according to Alan Milburn the former Government minister, bosses say the Government is pouring petrol on the fire.

Alan Milburn released his review into youth unemployment last week and warned Britain is heading for an “economic catastrophe”, blaming social media, welfare rules and tax hikes.

Milburn said the NICs rise alone has slapped £4,000 onto the cost of hiring a young worker, hitting pubs, bars, shops and restaurants hardest. These industries are the gateway employers for young people but bosses say the gateway is now slamming shut.

Pub bosses say they want to hire but can’t afford it. They’re calling on the government to “think radically” and slash business rates and VAT if it wants pubs to keep hiring. They say Government policies have created a perfect storm. Costs are up, pressure is up, and jobs for young people are down.

The hospitality trade body UK Hospitality boss says the loss of 100,000 jobs after the NICs hike should have signalled to Government the magnitude of the problem and that youth employment won’t recover unless it is made economically beneficial to hire young people again.

The Government has continually said that the Budget was needed to stabilise the economy and raising the minimum wage was the right move to support low‑paid workers during the cost‑of‑living crisis. Pub bosses say Labour’s tax hikes are pricing young people out of work. We have a stand-off. Meanwhile, youth unemployment keeps rising and Britain’s pubs say they’re being pushed to breaking point. Bosses say that if the Government doesn’t act soon, the next crisis won’t just be in the job market… it’ll be at the bar.