GDP data, combined with jobs numbers this week, are beginning to reveal the devastating impact of increases to employer NICs.
New data from the ONS shows that the economy contracted by 0.3% in April. This in after data revealed that there were 109,000 fewer payrolled employees across the economy in May, compared to the previous month.
Our response
Kate Nicholls, Chief Executive of UKHospitality, said: “It’s clear that economic warning signs are flashing and the impact of April’s cost increases are having exactly the impact that was predicted.
“GDP figures can be volatile but an immediate shrinking of the economy and more than 100,000 jobs lost in just a month shows that the huge increase to employer NICs is putting the brakes on growth.
“Hospitality is a resilient sector and businesses are doing all they can to trade their way out of these challenges, but it has the potential to be the engine for growth if it is properly backed.
“The economy only grows when hospitality is strong. The Government needs to take these warning signs seriously and urgently review and reverse the changes to NICs, while bringing forward clear plans to empower hospitality and the high street.”
