Hospitality restrictions have halved economic growth, UKH claims

UKHospitality has claimed that restrictions on the country’s hospitality sector have almost halved the UK’s economic growth, with the situation only likely to get worse.

The report follows the new figures released by the Office for National Statistics (ONS) which showed that nearly half (45%) of UK businesses currently trading said their turnover had decreased compared with what is normally expected at this time of year.

ONS also revealed that GDP grew by 0.4% but accommodation and food services declined by 0.37% compared to September.

Kate Nicholls, chief executive for UKHospitality, said that the impact of the restrictions on the hospitality sector has been “so severe” that it has effectively halved the country’s economic growth.

The figures released by the ONS should leave nobody in any doubt that the restrictions being placed on hospitality are having a “devastating effect” and go beyond anything being experienced in other sectors.

Nicholls said: “The frightening reality is that these figures are going to look tame compared to those for November and December when the lockdown was in effect and as the new, harsher tier system began to bite.

“The government needs to look carefully at these figures before making a decision to plunge more areas into higher tiers – the burden of which falls almost exclusively on hospitality businesses.”

She added: “If we can take a positive from this, it is that the stats make the case for the importance of our sector economically plain for all to see.

“If we are supported adequately through the tail of this crisis, our businesses can spearhead the country’s economic recovery. But, it will only be able to do so if it survives the next few months.”