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Bars boost UK economy
By Melita KielyThe hospitality industry was responsible for 40% of the UK’s total economic growth between the first and second quarter of 2021, new data has revealed.

ONS (Office of National Statistics) data published yesterday (12 August) showed the UK economy grew by 4.8% in the second quarter (Q2) of 2021, as Covid-19 restrictions were lifted.
Further analysis as part of the UK Hospitality Quarterly Tracker, produced by CGA, revealed the on-trade was responsible for 40% of this growth.
Kate Nicholls, chief executive of trade body UK Hospitality, said: “These figures not only show the importance of the hospitality sector to the UK economy, even in the severely restricted and beleaguered state it was in during the second quarter of this year, but also demonstrate its real potential to power a wider economic recovery now trading restrictions have finally been eased after almost 18 months.
“However, this was not a period characterised by booming sales and plain sailing for the sector, but many weeks where businesses were still operating under strict restrictions and experienced a multitude of challenges brought about by the pandemic. What should be remembered is that the sector collectively lost over £100bn [US$138bn] in sales across the course of the pandemic – a truly staggering figure.
“To help safeguard the future of the sector and its recovery, we urge the government to continue to work closely with businesses to help them navigate the challenges that we will undoubtedly face in the months ahead and to create a business landscape that will help return businesses to profitability as quickly as possible.
“Measures we are calling for include the urgently needed reform of business rates and a permanently lowered rate of VAT.”
Covid-19 combined with other geopolitical challenges have created a staff shortage problem for the hospitality industry around the world.
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