News / Press release / Economy

UK enters technical recession, new figures show

The UK fell into a technical recession at the end of 2023, new GDP figures.

It comes after GDP shrank in both Q3 and Q4, by 0.1% and 0.3% respectively.

Despite those two quarters, GDP across the entirety of 2023 grew marginally by 0.1%.

Our response

Kate Nicholls, Chief Executive of UKHospitality, said: “The economy officially entering a technical recession is hugely concerning. Consumer confidence has already taken a huge hit over the past year as the cost-of-living crisis bites and today’s news will dent it even further.

“That will be a big worry for hospitality businesses up and down the country, as they need support from consumers more than ever.

“As we head towards the Budget, I’d urge the Chancellor to look to hospitality as a sector that has a proven track record of driving growth and stimulating demand in the economy.

“Introducing a lower rate of VAT for hospitality and capping business rates increases would allow venues to reduce those incredibly high business costs and keep price rises at bay – that would be good for the public, businesses and the economy.”

Write to your MP backing our Budget asks

Ahead of the Budget on March 6, we’re asking the Government to support the sector by capping business rates increases, lowering the rate of VAT and addressing employer National Insurance Contributions.

Our three critical asks at the Budgetarrow icon