UK entering technical recession ‘big worry’

The data from the Office of National Statistics (ONS) also showed UK gross domestic product (GDP – the monetary value of final goods and services) was estimated to have dropped by 0.3% in the last quarter of 2023, following an unrevised fall of 0.1% in the previous quarter.

Two or more consecutive quarters of contraction is usually the definition of a technical recession,

The economy officially entering a technical recession was hugely concerning, according to UKHospitality chief executive Kate Nicholls.

Confidence hit

“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,” she added.

“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 incredible high business costs and keep price rises at bay – that would be good for the public, businesses and the economy.”

No let up

British Beer & Pub Association chief executive Emma McClarkin echoed Nicholls’ concerns about the economic announcement.

She said: “Today’s official figures indicating the UK economy is in recession is extremely worrying and indicates there will be no let up in the pressure facing the beer and pub sector.

“It underlines the importance of the Chancellor loosening the economic vice grip on breweries and pubs by cutting beer duty, capping business rates and introducing a pub specific VAT rate at the Spring Budget​ in just over two weeks.”