UKHospitality: ‘Flatlining economy underlines importance of sector as driver of growth’

Monthly real gross domestic product (GDP) is estimated to have shown no growth in April 2024, according to the Office for National Statistics (ONS), following growth of 0.4% in March 2024.

The impact of wetter weather over the course of the month was blamed as a contributor to the figures with food and beverage service activities falling by 1.2%.

“The flatlining economy in April underlines just how important hospitality is as a driver of growth,” says Kate Nicholls, chief executive of UKHospitality.

“When hospitality suffers, as it did in April due to wet weather dampening consumer demand, the economy suffers too.”

Amid the ongoing general election campaign, Nicholls has reiterated her calls for the business rate system to be overhauled and employment costs to be reduced.

“It’s clear that hospitality is a bellwether for the nation’s economic performance, which reinforces the need for an incoming government to act swiftly to create the right conditions for the sector to thrive,” she continues.

“Fixing business rates, reforming the Apprenticeship Levy and reducing employment costs are all crucial measures that will allow hospitality to grow and create places where people want to live, work and invest.”