BBPA calls for ‘significant interventions' in Spring Budget

The British Beer and Pub Association (BBPA) has called on the Chancellor to make "significant interventions" to help the hospitality industry in the Spring Budget after figures revealed the UK narrowly avoided falling into recession last year.

GDP figures released today by the Office for National Statistics (ONS) showed that growth had flat-lined in the three months to December 2022.

The services sector fell by 0.8% in December 2022, making this the main driver of the 0.5% drop in monthly GDP in December 2022.

The decline was offset by increases in growth in the two months prior to December, which meant that on balance, the UK had avoided a recession.

Annual GDP is estimated to have jumped by 4.1% in 2022 compared to 7.4% in 2021.

Emma McClarkin, chief executive of the BBPA, said: "Pubs and brewers are still operating in extremely tough conditions, with inflation pushing up prices across the supply chain and consumer confidence remaining low.

"The absence of meaningful growth in our economy is causing an extreme lack of confidence amongst publicans and brewers, with one in three hospitality businesses predicting business failure in the next 12 months."

She added: "The Chancellor needs to make some significant interventions in the Spring Budget to turn this around and ensure our industry can make the contribution it so desperately wants to and continue to support livelihoods in communities across the country."

The cut in energy bill support due to take place from April has already led hospitality operators to cut wages and operating hours.

Michael Kill, chief executive of the Night Time Industries Association (NTIA), said "thousands of businesses are suffering the impact of a recession" despite the cautious optimism suggested in recent figures.

He added: "Independent businesses are particularly vulnerable, as we saw in the release of Night Time Economy ONS figures, has contracted by over 13%.

"With these businesses making up a huge proportion of the sector, the government must act to protect business most at risk."