The Treasury has announced that from April, the National Minimum Wage for 18-20-year-olds will increase to £10 an hour, an increase of 16%, and the National Living Wage will increase to £12.21 an hour, a 6.7% increase.
Our response
Kate Nicholls, Chief Executive of UKHospitality, said: “These wage rises are well above expectations, and make the Budget even more important.
“It’s an added £1.9 billion to the hospitality wage bill, on top of the cost of the Employment Rights Bill and, if rumours about the Budget are true, employer NICs and business rate rises.
“Trying to balance the books from the pockets of high street businesses will simply leave hospitality as collateral damage – threatening jobs, future investment, price increases for consumers, and business viability.
“Businesses will be approaching tomorrow’s Budget with even more trepidation following this news. Our companies desperately want to be able to support higher wages for staff but what is being asked of them is simply unsustainable if taxes are going to shoot up at the same time.
“In light of this, it’s paramount that the Budget includes targeted measures to support the high street and the cost burden it is facing. That must start with addressing the broken business rates system and implementing a lower, permanent and universal level for hospitality.”
