EAST of England pubs employ more young people than ever before but the Budget means many may have to make difficult decisions to save jobs, the British Beer and Pub Association warns.
Prior to the Budget, nationally the National Insurance Contributions for 350,000 under 25-year-olds was equal to approximately £82 million. With the new NICs announced in the Budget, this will now cost a staggering £153 million to maintain the same amount of under 25-year-old workers.
The sector, which is millions of people’s first step on the career ladder, provides significant employment opportunities for young people and those seeking flexible work, the BBPA said.
However, given the Budget’s rise in National Insurance Contributions and increased wage costs, pubs may have to make tough decisions so they can afford to keep staff. This could mean halting recruitment or pushing up prices.
The BBPA is calling on Government to reconsider the timing of the new employment costs so businesses can better plan and carry on employing staff they need, rather than staff they can afford.
Emma McClarkin, CEO of the British Beer and Pub Association, said: “We know Government acknowledged our industry, but they must be clear-eyed about the shattering effect new regulations will have on us.
“Many will have worked behind a bar and know that it’s more than just a job. Our industry provides rewarding careers, helps younger people build skills, grow in confidence, and fund university education or driving lessons. Without this vital work many would struggle with rents, bills, and basic living.
“If we’re to keep people in work and put money in their pockets, business needs to be viable. We urge the Government to reconsider the timings of the new employment costs and swiftly deliver meaningful business rate reforms. Only then can we continue to be the backbone of the UK job market and a cornerstone of the community.”
The British Beer and Pub Association’s figures shows that the Budget’s cumulative impact means, at a conservative estimate, a £500m increase to the cost of doing business for the industry and risks jobs.
