The food and drinks industry took center stage in November, contributing significantly to the 0.1% growth seen in the UK’s overall services sector, according to the Office for National Statistics (ONS).
This increase in services proved crucial for bolstering the nation’s GDP during the month.
Sector Performance
The ONS data reveals a substantial rebound, with the food and drinks sector climbing by 1.6%.
This rise comes after a difficult October, when the sector faced a 2% decline.
Government Support Needed
UKHospitality’s Chief Executive highlighted the essential role of the hospitality industry in driving economic recovery.
She emphasized how this sector can serve as a powerful engine for growth, showcasing its ability to enhance national prosperity.
Her appeal to the government was straightforward: increased support and investment for hospitality businesses are vital.
However, clouds gather on the horizon.
A projected £3.4 billion increase in costs slated for April could jeopardize this newfound momentum.
If these changes take effect, businesses may need to reassess their investment plans.
The potential consequences include hiring freezes, reduced hours for staff, and price hikes.
Call for Action
In light of these challenges, the Chief Executive urged the Chancellor to reconsider the impending changes to employer National Insurance Contributions.
A delay in these adjustments would facilitate meaningful dialogues between the government and businesses, proving critical for helping enterprises sustain their growth.
Source: Harpers
