Third of businesses to reduce opening hours over Christmas due to staff shortages

The report also showed the toll labour shortages has taken on business confidence, with 60 per cent of business leaders no longer confident about recruitment.

UKHospitality is calling on the government to implement a ‘two-phase’ approach to tackle the issue, with changes to the immigration system and reforms to the Apprenticeship Levy. In particular:

• Expanding the Youth Mobility Scheme to include EU member states
• Reviewing the shortage occupation list to accurately reflect the state of the labour market
• Abolishing the Immigration Skills Charge, a punitive measure that is an additional charge on top of other visa requirements and deters would-be applicants
• Reform of the Apprenticeship Levy to include a proportion of funds being made eligible for use on non-apprenticeship training and improving the operation of apprenticeship system

UKHospitality chief executive officer, Kate Nicholls, said workforce challenges have unfortunately become a fixture for hospitality businesses.

“We are facing a systemic problem that has persisted for years and it needs urgent attention from Government,” she said.

“The statistics in the report lay bare the real-life impact on businesses and consumers as a result of not having enough staff. It’s so disappointing that businesses are having to go to such lengths such as simplifying menus and reducing trading hours to deal with this. It’s also doing the consumer a disservice, limiting choice and availability.

“There are very simple measures available to the Government that can free up the immigration system and make a huge difference to business. Expanding the Youth Mobility Scheme to the EU27, for example, would do wonders to add good numbers of people to the available labour pool.

“Implementing these measures, alongside reform of the Apprenticeship Levy to best develop our own talent, would help hospitality businesses no end. With the right staffing resource, hospitality can really drive growth, offer customers an enhanced experience and help lift up the economy.”