Hospitality helps drive economic growth in November
However, UKH has warned that the £3.4bn hitting the sector in April threatens businesses’ ability to invest and grow
Food and beverage was the highest performing sector of the economy in November, according to November GDP estimates released by the Office for National Statistics (ONS).
The accommodation and food service activities subsector saw output rise by 2.0% in the month, following a fall of 1.2% in October 2024.
Both food and beverage service activities, and accommodation grew in November 2024, by 1.6% and 3.0%, respectively.
Overall, monthly real gross domestic product is estimated to have grown by 0.1% in November 2024.
As a result UKHospitality is urging the Government to harness the economic growth potential of hospitality.
However, UKH has warned that the £3.4bn hitting the sector in April threatens businesses’ ability to invest and grow.
Kate Nicholls, UKH CEO, 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 £3.4bn 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.”
