On a visit to the Nag’s Head in Usk, the difficulties facing the hospitality sector were highlighted as figures revealed almost 70,000 people have lost their positions in the industry.

Laura Anne Jones MS has warned that Rachel Reeves’ recent National Insurance increase is delivering a devastating blow to pubs and hospitality businesses, putting jobs and cherished community hubs at risk across Wales and the UK.

The UK Government’s decision to raise employers’ National Insurance contributions from 13.8 per cent to 15 per cent on wages above £5,000 took effect recently, increasing costs for pubs already struggling with soaring energy bills, business rates, and borrowing costs.

New ONS figures show that hospitality jobs have slumped sharply since the tax rise, with 69,000 workers losing their positions, the steepest peacetime job losses for the sector since records began, outside of the pandemic.

According to the British Beer and Pub Association, 19 pubs closed permanently in Wales during 2024, an average of one closure every three weeks, while across Britain, an average of six pubs shut their doors every week last year.

Ms Jones, Senedd Member for South Wales East, said: “Pubs are the heart of our communities; places where friendships flourish, local culture thrives, and jobs are created. Yet, this tax bombshell risks wiping out many of these vital hubs.”

“The National Insurance hike is a heavy blow on top of the challenges pubs already face, from rising energy costs to business rates. It’s no surprise we’re now seeing hospitality jobs slumping and our cherished local pubs closing at an alarming rate.”

“We urgently need a comprehensive plan from the Government to reduce costs, support our pubs, and protect jobs.“Without swift action, we risk losing parts of our community fabric and thousands of livelihoods.”