Consumer inflation fears reach highest level in three years
05 Sep 2017
Hospitality industry under threat without government support
Rising levels of inflation is a major cause for concern amongst two thirds (65 per cent) of UK adults, the highest level since 2014.
Despite UK inflation staying at 2.6 per cent in July, a survey commissioned by Lloyds Bank shows a 69 per cent increase in the proportion of people who feel negative about the country's financial situation.
The report also shows that, year-on-year, essential spending amongst consumers for July dropped to two per cent, slowing from three per cent in June.
Matthew Burge, Partner and Head of Hospitality and Leisure at Beavis Morgan, comments: "The rising levels of inflation is affecting household disposable incomes. This is not only impacting consumer spending on essential foods, but also spending on eating out and other leisure activities.
"There is no doubt that the decision to leave the European Union has caused much uncertainty for the hospitality sector, which is Britain's fourth largest industry and a key driver of growth for the UK economy.
"Adding to concerns, the hospitality sector faces a shortfall of 60,000* workers a year if immigration from the EU is too tightly controlled after Brexit," Matthew adds.
Commenting on a recent report which further demonstrates that growth in the hospitality industry is under threat without Government support, Ufi Ibrahim, Chief Executive of the British Hospitality Association, says: “We need the Government to step up and support our industry by reducing tourism VAT, working with us to reduce the dependence on EU workers and increase the number of UK workers joining the hospitality industry, allowing the Low Pay Commission to set the National Living Wage and to bring forward a fundamental review of Business Rates”.
At Beavis Morgan, we have extensive experience of working with clients in the hospitality sector and our professionals are acknowledged experts in issues affecting pubs, bars and restaurants.
* Figures published by the British Hospitality Association, March 2017