Industry "hugely concerned" over technical recession
The UK economy fell into a technical recession at the end of last year.
Representatives from across the pub and bar industry have been responding to the news that the UK economy fell into recession last year.
The Office for National Statistics confirmed that UK gross domestic product (GDP) is estimated to have fallen by 0.3% in Quarter 4 (October to December) 2023, following an unrevised fall of 0.1% in the previous quarter.
A second consecutive quarter of falling national output is the technical definition of a recession. On this occasion, it was attributed to households cutting back on spending due to the cost-of-living crisis.
"The economy officially entering a technical recession is hugely concerning," says Kate Nicholls, chief executive of UKHospitality. "Consumer confidence has already taken a huge hit over the past year as the cost-of-living crisis bites and today’s news will dent it even further.
"That will be a big worry for hospitality businesses up and down the country, as they need support from consumers more than ever. As we head towards the Budget, I’d urge the chancellor to look to hospitality as a sector that has a proven track record of driving growth and stimulating demand in the economy.
"Introducing a lower rate of VAT for hospitality and capping business rates increases would allow venues to reduce those incredibly high business costs and keep price rises at bay – that would be good for the public, businesses and the economy."
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