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.”
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