Springboard has raised concerns about the impact of the Autumn Budget on the hospitality sector. The charity says new measures will reduce entry-level jobs and potentially deepen long-term skills shortages, unless there is further support.
The minimum wage will rise next year, while income tax and National Insurance thresholds will remain frozen. Springboard says this combination will result in fewer early-career roles, which will limit progression into future management positions as the sector recovers.
Chris Gamm, CEO at Springboard, issued the following statement:
“Today’s outcome from the Autumn Budget is deeply concerning for the hospitality industry. With the minimum wage set to increase and a freeze on income tax and NI thresholds extended, we expect entry-level hospitality roles to decrease and further job losses to follow. We also predict the long-term effects of this will mean in time, there will be a shortage of future managers and leaders.
“This will put immense pressure on the sector and on charities like Springboard, which are committed to training and supporting people into work. We urge the Government to work closely with us and the wider industry to ensure adequate support is put in place to protect jobs, sustain training and development, and safeguard the long-term resilience of this essential sector.”
Springboard supports people into careers in hospitality, leisure and tourism through training and employability programmes. The organisation says demand for its services will increase if employers cut junior roles.
It has asked the Government to outline measures that protect jobs and maintain investment in workforce development.