The leading trade body has said the economy shrinking in October reflects a slump in consumer, business and investor confidence.
According to the ONS, the UK economy shrank by 0.1% in October. This follows another 0.1% drop in GDP in September.
Our response
Kate Nicholls, Chief Executive of UKHospitality, said: “Today’s figures are extremely worrying and show just how fragile the UK economy remains.
“The economy shrinking in October reflects a concerted slump in consumer, business and investor confidence. This was before the Budget, which dealt businesses yet more costs, the consequences of which are still to come.
“The changes to employer NICs, particularly the lowering of the threshold, hits hospitality disproportionately hard and has already slammed the brakes on any investment decisions, which are much-needed to drive growth.
“We are continuing to urge the Government to rethink its decision to go ahead with this damaging change in its current form, and instead work with industry on alternatives that mitigate the impacts on businesses, team members and economic growth.”
