The figures emphasise the need for action to kickstart the economy and reduce costs in the Spring Statement.
New figures from the ONS revealed that the economy shrank by 0.1% in January 2025.
Our response
Kate Nicholls, Chief Executive of UKHospitality, said: “The economy unexpectedly shrinking in January demonstrates how important action to kickstart the economy is.
“Increasing costs across the board are putting intense pressure on both businesses and consumers, and this will only intensify in April, when £3.4 billion hits hospitality businesses.
“Hospitality growth had been storming ahead in November and December but, like the economy, contracted in January.
“This shows how vulnerable businesses are and emphasises the need for action at the Spring Statement to reduce costs and boost business confidence.
“With the right measures, namely delaying the lowering of the employer NICs threshold, hospitality has proven to be a sector that can react most strongly and deliver much-needed economic growth, alongside social value.”
