Why the autumn Budget threatens the future of hospitality
The 2025 autumn Budget was presented as a package designed to “make work pay”, particularly for young people.
Yet across the hospitality sector, from small pub operators to three-Michelin-star kitchens and youth employment charities, the reaction was far from celebratory.
Rising wage costs, higher taxes and a lack of recognition of knock-on effects have created a reality in which businesses say they will be less willing to hire young people - not more.
And few people see that more clearly than Chris Gamm, CEO of Springboard, the charity that helps thousands of young people each year take their first step into the industry.
“The real impact is with employers, and it's a trend of what's been seen already,” he explained.
“So increased costs - we've seen taxes go up, we've seen increased wage costs going up. It's just putting cost pressure on businesses. It's making them make difficult decisions about whether they're going to trade unprofitably or they're going to cut their costs back.”
- Read more: What does the 2025 autumn Budget mean for UK Hospitality?
- Read more: Why the Budget threatens survival of rural pubs?
Hospitality entered 2025 already bruised by energy spikes, Brexit-related shortages and post-pandemic debt.
Staffing was fragile before the Budget, Chris said, and despite lobbying for targeted relief, it has not been forthcoming.
He said: “There were calls from the industry to lower costs, lower tax, but that's not really happened. There's been a little bit around business rates, but just the cost of hiring people has gone up again.”
Minimum Wage Rises Reduce Opportunities for Young People
At the centre of this cost increase is the sharp rises from April 2026 in the National Living Wage for over 21s, from £12.21 to £12.71, and significant jumps for younger age brackets, notably 18 to 20-year-olds rising from £10 to £10.85 an hour.
While many employers and campaigners support fair pay, the scale and timing of the increases give businesses a big dilemma.
“The intention of the government was to make it a better deal for young people, but in turn it's made it harder for young people to get jobs in the industry,” Chris insisted.
It’s not that employers don’t value young people — hospitality has long been one of the UK’s largest youth employers. But the numbers no longer support taking a chance on someone without experience, when the cost of getting that decision wrong becomes so high.
“Businesses are forced to make tough decisions,” he said.
“So they're cutting back hours, reducing hiring, favouring more experienced staff, and that is unfortunately limiting opportunities for those that are just starting out in the industry.”
This viewpoint is echoed at the highest level of the sector, as three-Michelin-starred chef Clare Smyth explained in an interview with The Telegraph last week.
Clare, who runs Core and recently opened Corenucopia in London, said: “I have very low expectations of our current government.
“They don’t recognise what a huge employer hospitality is.
“I’m always happy to pay my fair share (of tax), but it stifles the economy when you keep bleeding the ones who just keep working harder and harder.
“I’ve asked myself whether I really want to take on more staff when it’s so costly to hire people.”
Why Businesses Are Less Willing to Hire and Train
When a chef at Clare’s level questions whether hiring is viable, the pressure on smaller independent operators becomes even clearer. But the consequence is the same everywhere: employers become risk averse.
As Chris succinctly put it: “Businesses are less willing to take a risk on a member of staff.”
And when businesses stop taking risks on young people without experience, the entire future talent pool decreases.
“There's going to be fewer younger people coming in, fewer jobs available, and that's going to have a knock-on effect right down the chain,” Chris said.
“So with fewer entry-level people, there's going to be potentially fewer future managers, fewer people who are going
to be the future leaders of the industry, the next generation of hospitality professionals.”
Strong Interest in Hospitality, But Fewer Jobs Available
Yet for all this, demand from young people themselves remains strong. Springboard continues to see thousands eager to enter hospitality.
“The good news is we're seeing people still want to work in the industry,” Chris said.
“They probably don't even see the impact of these changes. They see it as a great industry, loads of potential, loads of career development.
“There can earn more money in the industry and with great career progression, none of that's changed.
“But the numbers are, there's 100,000 fewer jobs in the industry than there were previously. So there are fewer opportunities for them, but last year Springboard got 5,000 people trained and into the industry and we're still seeing a big demand for our services.”
Government Still Doesn’t View Hospitality as a Core Sector
This raises a bigger question: if hospitality is one of the UK’s largest employers of young people, why does it continue to sit outside the government’s list of “core sectors”?
According to Chris, this perception gap drives policy.
“The government doesn't see hospitality as one of its core sectors at the moment, which is a huge missed opportunity and probably reflects the fact that a perception needs to change around careers in hospitality among teachers, careers advisors, and the government, it seems," he said.
Asked why he feels that is the case, Chris added: “I think it stems from the perception that hospitality is around lower skilled, short-term roles rather than long-term careers.
“And it fails to reflect the potential of the sector. It is one of the largest employers of young people. It is facing persistent skill shortages, but it struggles to gain the same policy recognition as what the government sees for a priority sector.”
Without recognition comes inaction.
Despite widespread calls, there was no major reform of the apprenticeship levy in the Budget - leaving billions of pounds in training funds unused.
“Lower costs would have stimulated confidence for employers to start hiring,” Chris said. “There was talk of reform of the apprenticeship levy. If only a portion of the billions of pounds locked up in that was freed up for staff to spend on training and developing their people and in-work skills that build a more productive workforce, which is what the government is seeking.
“There is the funding there from within the industry to do that, but that's not something we've seen quite yet.”
How Springboard Is Supporting the Next Generation of Talent
Discussing the role Springboard can play in supporting future hospitality workers, Chris said: “Changing perceptions of a career in hospitality is a major focus what we do.
“We've been doing it 35 years. We help young people overcome barriers. We help them get their first foot in the door, which is exactly what the industry needs right now.”
Their impact is significant: 5,000 people placed into hospitality roles each year, and a strategic goal to deliver 200,000 skills training interventions across confidence, teamwork, employability and hands-on experience. For employers, the return on that investment is tangible.
“When businesses hire through us, they're getting team members who are motivated, job ready and likely to stay in their role,” Chris said.
“81% of our trainees are still in work 12 months later.”
Protecting Hospitality’s Future Means Protecting Young People
The autumn Budget may not have targeted hospitality directly, but it risks weakening the industry’s long-term foundations.
Hiring fewer young people today means fewer leaders tomorrow. That is the real threat.
Hospitality remains full of opportunity, energy and ambition. But opportunity requires access, something which needs to be strongly considered by decision-makers moving forward.
The Staff Canteen has always been more than a website—it’s a community, built by and for hospitality. We share the wins, the challenges, the graft, and the inspiration that keeps kitchens alive.
We believe in staying open to everyone, but creating this content takes real resources. If you’ve ever found value here—whether it’s a recipe, an interview, or a laugh when you needed it most—consider giving just £3 to keep it going.
A little from you keeps this space free for all. Let’s keep lifting the industry, together.
Support Us
CONTRIBUTE
Why the autumn Budget threatens the future of hospitality
