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Hospitality industry says NO to the National Insurance rise

Hospitality industry says NO to the National Insurance rise

Over 90% of workers within the hotel, hospitality and catering industry are against the planned rise in National Insurance.

This is the overwhelming result of a 12 hour poll of employers and people earning less than 35,000 working in the leisure industry by Berkeley Scott the hospitalitys leading recruitment consultancy. The survey asked people to comment on whether they felt the increase in National Insurance should be avoided.

92% said that they were against the planned rise in National Insurance.

Mark Darby, managing director of Berkeley Scott commented these results are very powerful. A lot has been made of business leaders making their voices heard, but these results are focused on the workforce themselves both permanent and temporary/casual labour on the face of it they support the growing number of business leaders condemning the National Insurance rise.

Berkeley Scott are keen to point out that they are not making any political statements we are merely reporting the views of our candidates and their employers who are directly affected by the economy from talking to them we know that they have listened to the arguments and formed their own opinions. Darby continues what we are sensing is that people are worried. They have struggled last year in an industry that was heavily hit and feel that not only will they be financially worse off but that the number of potential vacancies will drop.

Daniel Jonberger commented that for employers the National Insurance rise would put more strain on smaller business and slow the recruitment and development in those areas a point highlighted by an independent hotel and catering consultant, Gerard de Nervaux It will be an employment tax and will affect our industry and slow down any recovery. [To implement the rise now would be] too risky at this stage

For the workers directly, Luke Robinson a chef summarised that within the industry taxation is quite high already for low/medium incomes a theme continued by Head Chef Vincenzo Morreale who points to the fact that wages in this sector have not seen an increase in a long while and in most cases there has been a decrease. To pay more National Insurance will mean that you'll earn even less.

Of the 8% backing the rise, many did so cautiously. Mike Holton, Director at Old English Taverns commented that NI may or may not be the best way but tax revenue rise seems essential. If the money came from service cuts that would be worse. The economy should be better by next year

Of course nobody wants a tax rise, which could explain the high percentage explains Mark Darby but what is interesting and shows sophistication within our industry is that the people we have spoken to today have all looked beyond the immediate impact on them and assessed it alongside the wider economy. Many have faced difficulties this year in an industry that has been massively affected and a majority are genuinely concerned that the increase in National Insurance will stop the recovery being seen in the industry they love. These people have sent a very clear message.

Interestingly the opinion was the same across all sub sectors pubs, restaurants, hotels, contract catering etc demonstrating unity across the industry.

Mark Darby concludes that the outcome of this issue will be known shortly, we can then work with candidates and employers pro-actively whatever the result, in order to minimise the impact on them of decisions made.


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