UKHospitality lauds government incentives to tackle labour shortages

Currently, vacancies in the sector stood 56% higher than pre-pandemic levels.

UKHospitality Chief Executive Kate Nicholls has welcomed the UK government's measures to encourage people back into work and alleviate labour shortages in the hospitality industry. According to Nicholls, vacancies in the sector are currently 56% higher than pre-pandemic levels.

Announced during the recent budget, the measures include reforms to childcare and assistance for those over 50 who are seeking to re-enter the workforce. Nicholls believes these areas are vital in addressing the industry's enormous vacancies.

“Maintaining current levels of energy support to consumers, freezing fuel duty and inflation reducing will help hard-pressed households and increase disposable income, which will be a huge boost for venues in desperate need of trade,” Nicholls said.

While Nicholls believes the reduction in draught duty is a positive step, she is urging the government to consider rolling out similar tax cuts across the wider drinks market.

Despite these measures, Nicholls believes urgent action is still required to address the market failures identified by Ofgem in its non-domestic review update. The sector is still set to face significant energy price increases when current support ends in April.

Overall, however, Nicholls is encouraged by the wider economic forecasts, which predict an upturn in consumer confidence and spending over time.