British boozers boost economy in November, but almighty Budget hangover looms
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THE British boozer helped the economy eke out growth in November but experts are already warning of an almighty hangover from the Chancellor’s Budget. Official figures yesterday showed that the growth in the services industry — including pubs, restaurants, and hotels - was the one bright spot.
Its output grew by 0.1 percent in November, but showed no growth over a longer three-month timeframe. Liz McGowan at the Office for National Statistics said the services sector was the biggest contributor to growth in the month. It follows pub group Young’s yesterday hailing a rise in sales of 26 percent in the 15 weeks to January 13, which includes the ONS November period.
Simon Dodd, boss of Young’s, said that it had some of the “highest daily sales” in its history. A day earlier, Mitchells & Butlers, owner of Toby Carvery and All Bar One, toasted strong sales. However, both pub groups issued grave warnings about the impact of the extra costs to the business from the Chancellor’s Budget and “headwinds facing consumers.”.
Economists yesterday highlighted that the 0.1 percent growth in the economy was below forecasts and rushed to dampen their views on this year. It comes as many companies have started the New Year warning they will have to recruit fewer staff and hold off opening new sites as they brace for a steep increase in staffing costs from the Budget.