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Restaurants

UKH welcome ‘positive news’ from ONS figures, but warn industry ‘remains fragile’

The hospitality group also renewed calls on the government to keep VAT at 12.5% beyond April

UKH has said the latest figures from ONS are “positive news” for the industry, after it reported that jobs in the hospitality sector are up 252,000 in the last 12 months, and unemployment has dropped to 4%, below pre-pandemic levels.

However, it warned that the sector “remains fragile”, and renewed calls on the government to keep VAT at 12.5% beyond April.

UKHospitality CEO, Kate Nicholls, said: “This is positive news for our beleaguered industry and clearly demonstrates what a vital role our businesses play in the UK’s economic recovery.

“The sector remains fragile, however, facing an onslaught of soaring costs including a rise in VAT to 20% next month. Today’s figures also chart record levels of vacancies in the sector, reflecting how challenging the labour market remains.”

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She added: “In addition, the data also shows an increase in the number of people choosing to be economically inactive, indicating a need for flexibility in order to avoid impacting the sector’s fragile recovery.

“If hospitality is to be able to continue to provide jobs and support wider UK recovery and growth, then the sector needs further support from the Government. The key to this will be for the Chancellor to keep VAT at 12.5% beyond April.”

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