According to November GDP estimates released by the Office for National Statistics, food and beverage was the highest performing sector of the economy in November. Accommodation activity was the third highest performing consumer service.
UKHospitality is urging the Government to harness the economic growth potential of hospitality, but warns that the £3.4 billion hitting the sector in April threatens businesses’ ability to invest and grow.
Kate Nicholls, Chief Executive of UKHospitality, said:
“Hospitality has been the engine behind economic growth in November. This clearly demonstrates the potential the sector has to help drive recovery and prosperity nationwide.
“It’s a timely reminder to the Government about why they should be looking to invest in and back hospitality businesses to help them deliver its growth agenda.
“Unfortunately, the £3.4 billion in costs levelled on the sector in April will have the opposite effect. It is already forcing businesses to abandon investment plans, freeze recruitment, cut hours and increase prices.
“We are urging the Chancellor to think again and to delay the changes to employer National Insurance Contributions. A pause will allow proper consultation with businesses and, crucially, enable businesses to continue on a path to growth.”
