Leaders’ confidence hits two-year low over Brexit

Confidence among pub and restaurant leaders has hit a two year low over the long-term impact of Brexit, CGA’s Business Confidence Survey reveals.

Less than a third (30%) of industry bosses are optimistic about prospects for the general market—down by nine percentage points on the last survey three months ago.

The figure is the lowest since November 2017, and the joint lowest since the EU Referendum of June 2016, according to the survey, produced in association with Fourth. 

Operators’ confidence in their own businesses has also dipped in recent months, the survey shows, with 58% of leaders now optimistic about their firm’s prospects in the next 12 months—down seven percentage points from the last poll, to the lowest point since late 2017.

Highlighting Brexit as the overwhelming source of pessimism, 44% said the uncertainty was their leading concern, while 52% cited the potential consequences of departure as their biggest worry.

Three quarters (74%) say they are concerned about increased food costs post-Brexit, 72% are worried about increased labour costs, and 67% a fall in consumer confidence.

CGA group chief executive Phil Tate said: “This is a sober message to the Government from the country’s pub, bar and restaurant operators. It is clear that the long-term consequences of Brexit are front of mind in the industry at the moment, and leaders don’t regard this as simply a short-term problem. There is an urgent need for clarity around Brexit’s impact in areas like imports and the labour market, and this sector deserves support that reflects its enormous contribution to the UK’s economy.”