Search
The Caterer

Investment in hospitality businesses falls by 12% year-on-year

11 March 2019 by
Investment in hospitality businesses falls by 12% year-on-year

Investment in hospitality businesses slumped by 12% year-on-year in the first three quarters of 2018.

Investment sunk to £4.97b across the sector according to specialist tax consultancy Catax, who attributed the fall to concerns over Brexit and particularly its impact on staffing.

The fall is indicative of that seen across the British economy, which recorded the most sluggish growth in six years.

Mark Tighe, CEO of Catax, said: "This steady collapse in business investment across the hotel and restaurant sector is a clear sign of crumbling confidence and it's fairly obvious that Brexit uncertainty is the driving force behind it.

"The hospitality industry will be hugely affected by whatever deal, or no deal, we emerge with at the end of March so it is not surprising that businesses are holding off on investment decisions until they know the outcome.

"This stagnation is damaging our economy at a time when we need it to be performing better than ever. Tax relief on much business investment is available, but that on its own may not be enough to see a recovery in these numbers. Politicians will need to move fast to restore confidence and give investors the certainty they need to take the bold decisions."

A disorderly Brexit could cost the hospitality industry £1.8b a year>>

Time to Brexit-proof your business >>

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.