Immigration, Labour, and the Future of Hospitality: A Tightening of the Screws?
Since the UK’s departure from the European Union, the hospitality sector has faced relentless staffing challenges. Once supported by international talent, is now operating under increasing strain due to both Brexit and successive governments’ tightening of immigration policy.
Labour’s most recent announcements continue a trend, not start one, of restricting access to overseas labour, raising serious questions about how much longer the hospitality industry can survive without meaningful reform.
Labour’s Immigration Stance: A Harder Line
Keir Starmer’s Labour recently laid out its latest position on immigration, pledging to bring down net migration by around 100,000 a year. Their plans include:
- A review of the Shortage Occupation List to ensure only “genuinely essential” roles remain
- Increased restrictions on family reunification routes
- Tougher English language requirements for overseas workers
- A commitment to reduce “economic dependency” on migration by boosting domestic skills
While framed as a long-term plan to rebuild the UK labour market, these measures follow on the heels of major Conservative changes, including the April 2024 increase to the Skilled Worker visa salary threshold from £26,200 to £38,700, a shift that already priced out the vast majority of hospitality roles from eligibility.
The Impact on Hospitality
Hospitality has been one of the hardest-hit sectors since Brexit, losing around 200,000 international workers since 2019. The introduction of even stricter immigration controls adds insult to injury, not only shrinking the talent pool but offering little in terms of practical support to replace it.
According to UKHospitality, 95% of visa applications for hospitality roles would no longer qualify under the current system, and that’s before Labour’s planned restrictions kick in.
Kate Nicholls, CEO of UKHospitality, warned last year:
“The Government seem to be running out of answers to fix the UK’s long-running labour market shortages. These changes will further shrink the talent pool that the entire economy will be recruiting from, and only worsen the shortages hospitality businesses are facing.”
Her words apply as much to Labour as they did to the Conservative government, which pushed through the previous reforms.
They urged more recently: “When imposing these restrictions, the Government has to bring forward an employment and skills strategy to further drive domestic recruitment… Against a backdrop of £3 billion in additional employment costs hitting hospitality businesses, such a strategy is critical if the Government is to achieve its goal of getting more people out of welfare and into work.”
A Sector Already on the Brink
Even before immigration policies tightened, hospitality businesses were being pushed to the edge:
- Employer National Insurance rises have driven up staff costs
- VAT and business rates continue to squeeze already razor-thin margins
- New environmental levies like the glass recycling tax add further operational costs
The result? Independent pubs and restaurants are reducing hours, cutting back services, or closing altogether.
This is not an industry refusing to adapt, it’s one being systematically squeezed from every angle.
What’s Missing from the Debate
Labour’s position may resonate with a public wary of high migration figures. But the reality is that hospitality needs immigration to function – and to survive.
While long-term investment in skills and training is welcome, it will not fill the gap overnight. The suggestion that the domestic workforce alone can step in, particularly for hard-to-fill roles like chefs, kitchen porters, and sommeliers, is simply not grounded in the current labour market.
A more nuanced, realistic approach is urgently needed.
What the Sector Needs
If Labour wants to be the party of working people, it must also support the industries that employ them. That means:
- A Shortage Occupation List that reflects actual industry needs
- Sector-specific visa routes for essential hospitality roles
- Support for small and independent businesses through fairer taxation and business rates reform
- Genuine collaboration with industry leaders, not policy made in isolation
Hospitality contributes over £140 billion to the UK economy, employs millions, and is deeply embedded in our communities. But it cannot continue to weather storm after storm, especially not alone.
Labour has an opportunity to support this sector not just in words, but in action. Whether it will seize that opportunity or continue down the path of restriction remains to be seen. Either way, the clock is ticking.
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