Giving Neets jobs in hospitality would generate £2.3bn, Hilton claims
Hilton has urged the government to encourage unemployed young people into hospitality, claiming that filling all the industry’s vacancies would add £2.3bn to the economy. The hotel group, in collaboration with trade body UK Hospitality (UKH), has urged Andy Burnham to lower taxes on hospitality firms to give them the breathing space to take a [...]
Hilton, in partnership with UK Hospitality, has urged the government to promote employment opportunities for young people in the hospitality industry. Filling the 33,600 vacant hospitality positions with unemployed, uneducated or training individuals, as identified by WPI Economics, would add £2.3bn annually to the economy. The "experience trap" preventing Neets from securing their first job costs Britain up to £14.4bn in lost economic output each year.
Hilton and UKH argue that hospitality firms are unable to hire due to rising business rates, employment costs and energy prices. To encourage hiring, the groups have suggested lowering employer national insurance contributions, reforming the business rates system and reducing VAT for hospitality from 20% to 10%. Approximately 85% of hospitality business owners believe higher taxes hinder their ability to employ young or inexperienced workers, while 81% claim they would invest more in new jobs if their tax burden was reduced.
Allen Simpson, CEO of UKH, says that hospitality jobs are "taxed out of existence," causing economic harm and denying a generation of young people their first job opportunity. He calls on the new Prime Minister to support hospitality by lowering its tax burden to unlock growth and create jobs across the country. The Treasury has been asked for their response.
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