Latest news with #UKHospitality
Business News Wales
9 hours ago
- Business
- Business News Wales
Hospitality Sector Ranked Lowest for Hourly Pay, New Data Reveals
Hospitality businesses offer the lowest hourly pay of any UK sector, new research suggests. Business finance experts at business bank accounts said that analysis of ONS data shows that tighter margins mean that hospitality firms are forced to offer staff hardly more than minimum wage. It comes as the UKHospitality chief executive Kate Nicholls has criticised the Uk Government's efforts to boost business growth through its recently announced Industrial Strategy, saying it failed to address the challenges facing the hospitality sector. Industries with the lowest hourly pay: The accommodation and food service activities sector makes up a significant part of the UK's economy, with the hospitality sector's annual economic contribution hitting £93 billion in 2023 and estimated to increase by another £29 billion by 2027. Despite this, this industry's workers have the lowest hourly pay rate. An average working week is around 26 hours long, and the average hourly pay is £12.39 – just 18 pence above the national living wage. Businesses within the industry have faced a lot of financial hardship in recent years, the researchers said, including the Covid pandemic and National Insurance increases. This has made improving workers' pay increasingly difficult while still making a profit, contributing to lower hourly rates in the sector. The sector also ranked in the top 10 for the amount of overtime worked, with employees clocking an average of 2.8 hours of overtime per week. Joe Phelan, business bank accounts expert, said: 'Attracting and retaining high-quality talent doesn't just come down to salary – it's also about meeting evolving expectations around working conditions. Today's employees are more willing to walk away from roles that don't offer a healthy work-life balance or prioritise wellbeing. That means businesses need to offer more than just pay; they must create environments with manageable hours, flexibility, and genuine support. 'When companies get this right, they typically see lower staff turnover, higher engagement, and more consistent productivity, all of which feed into more stable operations and healthier cash flow. And with greater financial predictability comes the ability to plan and grow with confidence.'
Telegraph
4 days ago
- Business
- Telegraph
Starmer picks his winners in bid to revive British industry
Sir Keir Starmer has vowed to make Britain 'the best place to do business' with a new industrial strategy focused on eight key areas of the economy. At 160 pages, the lengthy document will form the centrepiece of Labour's economic policy as ministers try to navigate the impact of geopolitical crises and Donald Trump's tariffs. It is designed to provide a clear blueprint for the Government's priorities over the next 10 years, unlocking jobs and investment. But critics have argued it will do little to help businesses battling rising prices and higher taxes. Here we look at some of the most interesting policies in the strategy published on Monday. What are the eight sectors? The Industrial Strategy focuses on eight areas of the economy that it says have 'the highest potential' over the next decade. They are: Advanced manufacturing (including cars) The creative industries Life sciences Clean energy Defence Digital and technologies Professional and business services Financial services Britain's 'foundational' industries – steel, construction, chemicals, ports and so forth – are also included. The eight sectors are those the Government believes will be most important to the country's future economic success. But as with any attempt to choose favourites, those left out are not happy. 'Ignoring 70pc of the economy is at odds with the Government's ambition to create jobs and help people into work,' warned Kate Nicholls, chief executive of UKHospitality. Energy costs The biggest new policy to come out of the strategy is a scheme to help manufacturers with soaring energy bills. British companies have been paying the highest industrial electricity prices in the developed world, according to official data.
Times
5 days ago
- Business
- Times
Businesses call for action on abuse of public-facing staff
Business leaders are urging the government to broaden legislative action to protect all public-facing workers amid soaring levels of violence and abuse. Some 42 per cent of workers in pubs, restaurants, hotels and transport said they experienced some form of abuse between October and March, a year-on-year increase of 19 per cent, according to the new figures from the Institute of Customer Service. An all-party parliamentary group, which works alongside the industry group UK Hospitality, whose members include retailers, hospitality groups, call centres and transport companies, has been tracking customer service across all sectors over the past five years. • Extra costs holding back hospitality sector, says Whitbread boss Over a third, or 37 per cent, of the 1,050 respondents to the organisation's latest survey said they had considered leaving their role because of incidents which include racial abuse and sexual harassment, while over a quarter said they had taken sick leave after such incidents. One in five workers said they had been threatened with violence, the highest level that the group had recorded. Jo Causon, chief executive of the Institute of Customer Service, said the research showed how 'frontline workers are facing unacceptable levels of assault and abuse from some customers'. Common assault is already an offence and the previous Conservative government had originally rejected calls to create a separate offence specifically linked to shopworkers, arguing it did not think it was 'required or will be most effective'. However, the retail industry argued that incidents were rising and Rishi Sunak's government reversed its position, although its plan to introduce a new offence was abandoned when parliament was dissolved for the general election. • Shops 'at breaking point' as thefts and abuse rocket While there has been a crackdown on retail crime, with a standalone offence of assaulting a retail worker in England and Wales set to be introduced as part of the government's Crime and Policing Bill, which is making its way through parliament, businesses are calling for the bill to be amended to include all those working in public-facing roles. In a letter to the government, 76 businesses said that current legislation provided 'only a partial solution to an endemic and preventable issue'. The signatories of the letter include Sky, Hays Travel, Wickes, Virgin Media 02, United Utilities and DPD. 'These professionals form the bedrock to our society and our economy,' the letter said. Causon added: 'Introducing appropriate protection for customer-facing workers is not only the right thing to do on a societal level, it is critical the UK's business performance isn't impacted by workers up and down the country taking time off sick or thinking about leaving their jobs altogether.'
The Herald Scotland
19-06-2025
- Business
- The Herald Scotland
Would many publicans have a drink with Sir Keir Starmer?
Hospitality has been in a serious huff with the UK Government since Ms Reeves announced whopping hikes in employer national insurance contributions, the national living wage, and the national minimum wage in the Autumn Budget. It warned at the time that the rise in labour costs, which according to UKHospitality will amount to a £3 billion rise in the industry's annual wage bill, would have a huge effect on jobs, growth, and investment. Now it appears those fears, which have been shared by other sectors such as retail, are beginning to be realised. Publicans are unlikely to glean any satisfaction from being able to say, 'I told you so'. A new analysis published by top 30 accountancy firm Price Bailey this week found that pub insolvencies surged in April - the month the increases in employer NICs and pay rates took effect - to the highest monthly total since last summer. The analysis found 67 pubs went out of business in April, the highest tally since July 2024 when 75 entered insolvency. The growing cost pressures on the industry have had an impact on consumers too, as the average price of a pint has steadily risen. The British Beer & Pub Association (BBPA) recently warned the average price of a pint would increase by as much as 21p as a result of the changes announced at the Autumn Budget, taking the average price from £4.80 to £5.01 (though in major cities the average price is significantly higher). The Office for National Statistics also tracks the average price of a draught pint and its most recent figures put the cost at 483p in January, following years of steady increases. After signs that the number of pubs entering insolvency had peaked in 2024 and was in decline by the end of that year and into the first quarter of 2025, Price Bailey said the number of pub insolvencies is ticking upwards again. 'The early signs are that the tax and minimum wage hikes which took effect in April are already tipping some struggling pubs over the edge,' said Matt Howard, head of the insolvency and recovery team at Price Bailey. 'It was widely believed that pub businesses would initially find ways to absorb the additional payroll costs and that the full impact would only be felt much later in the year. That the impact has been so immediate shows that many pubs had already exhausted their financial buffers.' Mr Howard added: 'April's sharp rise in inflation, driven in part by rising energy costs, is adding to the misery of many publicans. One in five pubs are technically insolvent, and while it is possible to keep trading and salvage the situation, being hit with sharp payroll and energy price rises will prove too much for many of them.' The Price Bailey report came shortly before a survey published by UKHospitality, The British Institute of Innkeeping, the BBPA, and Hospitality Ulster on June 2 revealed that one-third of hospitality businesses are now operating at a loss. This was an 11 percentage point increase on the previous quarter. The survey also found that six in 10 operators have had to cut jobs amid the "devastating" impact of April's cost hikes, while 63% have reduced the hours available to staff as the industry has taken steps to mitigate the higher overheads. But signs of distress in the economy are not limited to hospitality. New research from R3, the UK insolvency and restructuring trade body, found insolvency-related activity hit a 29-month high in May as businesses faced challenges on a raft of fronts. R3 highlighted the hikes in employer NICs and national living and minimum wage among a host of factors that are weighing on businesses as its analysis found there were 141 cases of insolvency-related activity – including administrator and liquidator appointments with creditors' meetings – in Scotland in May. This was the highest number since the December 2022 figure of 142, and 30.6% up on April's 108. 'We have seen a substantial rise in insolvency-related activity in Scotland since the start of the year, but last month's rise to the highest point in more than two years is a reminder of just how tough trading conditions are,' declared Tim Cooper, immediate past president of R3 and a partner at law firm Addleshaw Goddard. 'Levels are now higher than they were for much of 2023 and for 2024, when many businesses were grappling with the aftermath of Covid and the impact of the cost of living crisis. 'A number of factors are likely contributing to the increase we're seeing, including a rise in MVLs (members' voluntary liquidations) from directors choosing to close their businesses in response to recent tax and policy changes, such as the increases to employers' national insurance and the minimum wage. 'We are also seeing a rise in winding up petitions as creditors take the lead from HMRC, which has become increasingly more willing to chase the debts it is owed. HMRC's more assertive stance seems to be influencing other creditors to follow suit, particularly where there are signs of persistent non-payment. 'This increase in insolvency-related activity also reflects the wider economic picture in Scotland. Business activity remains subdued, and firms continue to face persistent cost pressures, higher tax obligations, and weak demand. For some, the combination of these pressures is tipping already fragile businesses into formal insolvency processes.' Clearly, these are worrying times for businesses across a range of sectors and, for a UK Government that has made growth its top priority, it is showing little sign of delivering the kind of conditions in which business can thrive. The latest UK labour market review by the ONS, published on June 10, found the number of payrolled employees for May decreased by 109,000 on the month before. This was reportedly the largest monthly fall since the same period in 2020, amid the first Covid lockdown. The rate of unemployment was found to have increased to 4.6% in the three months to April, from 4.5% in the three months to March, reaching the highest level since the three months to July 2021. Pay growth also eased, the ONS found. Moreover, official figures published last week found the UK economy went into reverse in April, as gross domestic product fell by 0.3% month on month. The decline was worse than the 0.1% expected by most economists, and Liz McKeown, director of economic statistics at the ONS, noted declining output in both the services and the manufacturing sectors in April. While a modest contraction in GDP over a single month offers a limited window into the health of the UK economy, there is no doubt it took a little wind out of the sails of the Chancellor, who received some praise from the Scottish business community for the Government's Spending Review which she announced the day before. That included a thumbs-up from Scottish Chambers of Commerce on a range of measures, including a commitment to fund the Acorn carbon capture and storage project in Aberdeenshire, held up as the kind of initiative that will be key to Scotland's energy transition hopes. Scottish Chambers' chief executive Liz Cameron said Acorn had the potential to create 15,000 jobs in its construction and attract billions of pounds of private sector investment as she also welcomed a commitment to increase defence spending. Although these funding commitments are clearly important, the Acorn Project and moves to hike defence expenditure will mean little to the many business owners who are struggling to keep the lights on as costs continue to rise and economic growth flatlines. The sense that the UK Government is struggling to address the issues facing many businesses was summed up by the Scottish Hospitality Group and the Federation of Small Businesses in their responses to the Spending Review. Stephen Montgomery, director of the Scottish Hospitality Group, declared the review did 'absolutely nothing' to support the sector. He said: 'Today we heard all about the spending plans, however nothing about helping those who will pay for it through taxes. 'To help the economy to grow, you need business to grow, so today we yet again see the sector let down by Rachel Reeves.' The reaction was not much better from the FSB, which said the review left its members 'wondering when they will feel the benefits'. If the business community were to write a report card for Sir Keir and Ms Reeves for the 11 months they have been in office, the verdict would surely not be anything more positive than 'could do better'.
Rhyl Journal
17-06-2025
- Climate
- Rhyl Journal
Temperatures could reach 33C this weekend as heatwave set to hit parts of UK
Forecasters are expecting temperatures to climb to a peak of 33C on Sunday in the east of England, approaching the highest ever temperature recorded in June – 35.6C in 1976. An official heatwave is recorded when areas reach a certain temperature for three consecutive days, with thresholds varying from 25C to 28C in different parts of the UK. Temperatures are predicted to reach 27C on Tuesday and Wednesday, 29C on Thursday, 30C by Friday, then 32C on Saturday and peak at 33C on Sunday, the Met Office said. Will any temperature records be broken this week? 🌡️ Here's our Deputy Chief Meteorologist Dan Holley: "Today and tomorrow, we could see a maximum temperatures of 27°C in the south of England, and 29°C on Thursday. "The trend for temperatures to rise continues into Friday,… — Met Office (@metoffice) June 17, 2025 And some thundery showers could be seen across the far west on Friday night into Saturday. Met Office deputy chief meteorologist Dan Holley said: 'Heat is the main story this week, with high pressure building and temperatures rising to heatwave levels in some areas by the weekend. 'Today and tomorrow, we could see maximum temperatures of 27C in the south of England, and 29C on Thursday. 'The trend for temperatures to rise continues into Friday, with a maximum of 30C in central England. With the hot temperatures, we could also see some thundery showers across the far west Friday night into Saturday. 'Widespread very warm conditions are expected on Saturday, with a top temperature of 32C. Sunday looks to see the peak of the very warm spell, with a headline max of 33C possible. This is most likely to be in the east of England, with other areas seeing temperatures into the high 20s to low 30 Celsius. Warm, and perhaps even 'tropical nights' will also be a feature this week. 'At present, the highest temperature ever recorded in June was 35.6C in Southampton in 1976. The warmest day of the year so far was 29.4C on June 13, recorded at Santon Downham in Suffolk. 'High pressure is expected to move away from the UK into early next week resulting in temperatures falling. However, there is uncertainty in how quickly this happens, and the peak temperatures experienced across the UK.' The hotter weather is a 'welcome lift' for the hospitality sector, Kate Nicholls, chief executive of UKHospitality, said. She said: 'This spell of warm weather will no doubt be a welcome lift for hospitality venues up and down the country, as people look to eat, drink and socialise outdoors. 'Businesses will now be hoping for a strong summer to help counterbalance the significant cost pressures they're contending with. Rain or shine, I'd encourage everyone to get out and support their local hospitality businesses.' Katy Alston, who has been in the ice cream trade for more than 20 years and runs Pinks Parlour near the beach in Bognor Regis, West Sussex, said this week's weather will be 'the difference between night and day' for her business. She said: 'We get so excited because this is what we wait for. 'People who work in ice cream vans are risk takers because you never know when that big yellow ball is going to come out.' Ms Alston said on Tuesday morning she had 84 inquiries from businesses wanting an ice cream van to visit, which is more than the last month. 'We want to go to as many people as we can,' she said. 'We're now making gelato around the clock, as fast as we're making it, we're selling it. 'It's our Christmas time.' Meanwhile, the London Fire Brigade has issued a warning over wildfires before the prolonged spell of hot weather and following one of the driest springs on record. Charlie Pugsley, deputy commissioner for operational policy, prevention and protection, said: 'Extended periods of hot and dry weather can greatly increase the risk of a grass fire, and particularly when that grass is tinder dry the spread of fire can be rapid. We have seen examples of this in London as well as more recently worldwide, such as in California and South Korea. 'Last month, I wrote to the chief executives of each London local authority, outlining some key measures they can take, such as to create fire breaks, and to welcome the work that councils are already undertaking.'
