Hospitality sector faces ‘death knell’ amid rising costs

Northern Ireland’s hospitality sector is under growing financial pressure, facing a combination of rising National Insurance contributions, wage increases, and a sharp business rates hike set to come into effect in April.

Willie Jack, a long-time operator in the sector, shared his concerns: “The increase in minimum wage is not affecting us because we always pay above it. But we will be affected regarding the National Insurance, which is a considerable sum for our company.” Rising National Insurance contributions and wages are significantly increasing operational costs.

Eamon McCusker, who operates three sites in Belfast, added, “Look, the minimum wage increases on their own would be tough — but when you combine it with rising National Insurance contributions, it’s a death knell for a lot of otherwise viable hospitality businesses here in Northern Ireland.” He stressed that businesses cannot absorb these costs easily, as they “don’t have a service charge culture” to make up for it.

One of the most pressing concerns is the rise in business rates, scheduled for April. “The issue of a “level playing field” is often discussed, but it’s clear the North is disadvantaged. We face higher rates, VAT, and corporation tax compared to the South. This is far from a level playing field, and I don’t think politicians fully grasp the situation,” Willie Jack said.

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