News
12th August 2011
Growth in hospitality and service industries
The UK economy may be sluggish but British
service industries - which contribute to
three-quarters of the UK economy - are looking
up.
Britain's service industries, which includes
catering and hospitality, have improved over the
past few months and reached a four-month high in
July 2011, reportedly a slightly better
performance than City economists expected.
However growth is still under par, and experts
warn that there is still a long way to go before
the sector and the rest of the economy can be
considered stable.
According to The Guardian, senior UK economist
at Capital Economics, Vicky Redwood, says that
the growth of UK service industries "does not
alter the picture of a pretty sluggish recovery"
and overall performance is "still well down on
the levels reached during the high point of the
recovery in 2010."
The service sector is a large industry that
includes catering, hospitality services,
recruitment and resourcing, along with other
professions such as finance, insurance and
brokerage services.
The hospitality industry was helped enormously
by the additional bank holiday and Royal Wedding
earlier this year, along with bouts of good
weather, which encouraged the British public to
holiday at home and make the most of the
festivities.
Some hospitality firms believe that a VAT cut
will help to boost the growth rate and keep
Britons spending. Shocking stat reveal that last
year, pubs closed at a rate of seven a day,
which has been partly blamed on high alcohol
duty rates - and key figures from the industry
are calling for assistance to keep the sector
buoyant.
Rufus Hallhief, executive of pub and restaurant
operator the Orchid Group, says that there has
been a noticeable "stifling of demand" since VAT
went up to 20% in January. Plus the increased
cost of living means that their customers are
going out less.
"A
VAT cut would create jobs and stimulate demand,"
he says. "There is quite a strong wind behind
this in the sector. We are overtaxed as an
industry and this would be a big help."
Contact the team at rd resourcing for more details about
hospitality jobs in the
UK.
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