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The increase in National Insurance Contributions of 1.2% might sound minimal, but in reality it translates to a more than 9% rise. Many employees in the hospitality industry who were previously earning below the £9,100 threshold will now fall under the new £5,000 limit, so part-time workers who did not previously attract employer NIC, such as those in housekeeping or banqueting, will now be subject to it. Coupled with rising minimum wages, these changes will undoubtedly drive inflation well above the Bank of England’s 2% target.
"We can’t escape these costs, but we can minimise the effects in certain areas."
Due to the nature of our industry, the impact on hotels will be widespread. Every product or service you can think of, from food and beverage to utilities, consumables and linen, will likely rise due with these inflationary increases.
