{"id":275070,"date":"2026-01-23T17:31:58","date_gmt":"2026-01-23T17:31:58","guid":{"rendered":"https:\/\/dominiclevent.com\/blog\/?p=275070"},"modified":"2026-01-23T17:31:58","modified_gmt":"2026-01-23T17:31:58","slug":"private-sector-bounces-back-but-reeves-leaves-hospitality-reeling","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/private-sector-bounces-back-but-reeves-leaves-hospitality-reeling\/","title":{"rendered":"Private sector bounces back but Reeves leaves hospitality reeling"},"content":{"rendered":"\n<p><!-- Ads Injected --><\/p>\n<p>The UK\u2019s private sector expanded at the fastest rate in nearly two years in the first month of 2026 but the reeling <a href=\"https:\/\/www.cityam.com\/business-rates-hike-lied-to-hospitality\/\" target=\"_blank\" rel=\"noopener noreferrer\">hospitality sector was still feeling the crunch<\/a> from Labour policy.<\/p>\n<p>The latest Flash Purchasing Managers Index (<a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/5228e09f7b1249468aa7cb637035c761\" target=\"_blank\" rel=\"noopener noreferrer\">PMI<\/a>) from S&amp;P Global showed a major uptick in the all-important services sector, which is often seen as the engine of the economy making up over 80 per cent of output.<\/p>\n<p>Fresh figures for January showed a \u201csustained improvement\u201d in new order intakes across the private sector, taking business optimism to the highest since before the 2024 Autumn Budget.<\/p>\n<p>\u201cUK business kicked up a gear in January, showing encouraging resilience in the face of recent geopolitical tensions,\u201d Chris Williamson, chief business economist at S&amp;P said.<\/p>\n<p>The PMI showed a reading of 53.9, up from 51.4 and maintaining a steady level above the 50.0 threshold, which indicates whether a sector is growing.<\/p>\n<div class=\"newsletter-auto-inject\" style=\"margin: 20px auto;\">\n<div id=\"mc_embed_shell\">\n<style type=\"text\/css\"><![CDATA[ #mc_embed_signup { background: #fff; clear: left; font: 14px Helvetica, Arial,sans-serif; width: 100%; max-width: 600px; margin: 20px 0; } #mc-embedded-subscribe-form { margin: 20px 0 !important; } .newsletter-form-flex { display: flex; gap: 0; align-items: center; margin-top: -10px; } .newsletter-form-flex input[type=\"email\"] { flex: 1; padding: 2px 10px; border: 1px solid rgb(18, 22, 23) !important; border-radius: 12px 0 0 12px !important; } .newsletter-form-flex input[type=\"submit\"] { padding: 4px 10px !important; margin: 0 !important; background-color: rgb(18, 22, 23) !important; color: rgb(255, 255, 255) !important; border: 1px solid rgb(18, 22, 23) !important; border-radius: 0 12px 12px 0 !important; } .newsletter-banner-content { margin-bottom: 15px; } .newsletter-banner-content h2 { margin: 0 0 10px 0; font-size: 18px; font-weight: 600; } .newsletter-banner-content p { margin: 0 0 10px 0; line-height: 1.5; } .newsletter-banner-content ul, .newsletter-banner-content ol { margin: 0 0 10px 20px; } .newsletter-banner-content a { color: #0073aa; text-decoration: none; } .newsletter-banner-content a:hover { text-decoration: underline; } .newsletter-banner-content img { max-width: 100%; height: auto; margin: 10px 0; } #mc_embed_signup #mce-success-response { color: #0356a5; display: none; margin: 0 0 10px; width: 100%; } #mc_embed_signup div#mce-responses { float: left; top: -1.4em; padding: 0; overflow: hidden; width: 100%; margin: 0; clear: both; } ]]><\/style>\n<\/div>\n<\/div>\n<p>Williamson said the growth was supported by a recovering manufacturing sector as well as strong performances from financial services and technology.<\/p>\n<h2 id=\"h-hospitality-hit-by-labour-policy\" class=\"wp-block-heading\">Hospitality hit by Labour policy<\/h2>\n<p>Despite the high levels of optimism, some good news was tempered by persisting cost inflation.<\/p>\n<aside class=\"read-more read-more--has-media read-more-auto\">\n<div class=\"read-more__content\">\n<h5 class=\"read-more__label\">Read more<\/h5>\n<h4 class=\"read-more__title\"><a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/calls-for-hospitality-support-grow-as-business-rates-outcry-deepens\/\" target=\"_blank\" rel=\"noopener noreferrer\">Calls for hospitality support grow as business rates outcry deepens<\/a><\/h4>\n<\/div>\n<\/aside>\n<p>S&amp;P said rising cost pressures triggered the greatest increase in average prices charged by private sector companies since August 2025.<\/p>\n<p>Williamson said an upturn in order books failed to stem the flow of the cost crunch leading to a \u201csteep loss of jobs\u201d as firms face pressure to balance the books.<\/p>\n<p>\u201cThese cost pressures were again often linked to government policies relating to higher national insurance contributions and the national minimum wage and led to an especially steep drop in hospitality jobs,\u201d Williamson said.<\/p>\n<p>The Labour government has been hounded to up its support for the hospitality sector after a major blunder on business rates reform left the industry reeling.<\/p>\n<p>Ministers U-turned on the package earlier this week, announcing pubs would be the only <a href=\"https:\/\/www.cityam.com\/only-pubs-set-to-benefit-from-business-rates-u-turn\/\" target=\"_blank\" rel=\"noopener noreferrer\">businesses to benefit from tax relief after outcry from the industry.<\/a><\/p>\n<p>Chancellor Rachel Reeves told the World Economic Forum on Wednesday: \u201cThe situation the pubs face is different from other parts of the hospitality sector but we will be setting out the detail in the next few days.\u201d<\/p>\n<p>According to the latest\u00a0<em>City AM\/<\/em>Freshwater Strategy poll, <a href=\"https:\/\/www.cityam.com\/calls-for-hospitality-support-grow-as-business-rates-outcry-deepens\/\" target=\"_blank\" rel=\"noopener noreferrer\">70 per cent of British voters believe hotels, restaurants and other struggling hospitality<\/a> businesses should be included in any support measures ministers are preparing to hand pubs.<\/p>\n<aside class=\"read-more read-more--has-media read-more-auto\">\n<div class=\"read-more__content\">\n<h5 class=\"read-more__label\">Read more<\/h5>\n<h4 class=\"read-more__title\"><a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/turtle-bay-founder-criticises-unhelpful-reeves-tax-raid-after-huge-loss\/\" target=\"_blank\" rel=\"noopener noreferrer\">Turtle Bay: Founder criticises \u2018unhelpful\u2019 Reeves\u2019 tax raid after huge loss<\/a><\/h4>\n<\/div>\n<\/aside>\n<footer class=\"article-footer \">\n<div class=\"tags-collection article-footer__tags-collection\">\n<h2 class=\"screen-reader-text\">Similarly tagged content:<\/h2>\n<nav class=\"tags \">\n<h3 class=\"tags__title\">Sections<\/h3>\n<\/nav>\n<nav class=\"tags \">\n<h3 class=\"tags__title\">Categories<\/h3>\n<\/nav>\n<nav class=\"tags \">\n<h3 class=\"tags__title\">People &amp; Organisations<\/h3>\n<\/nav>\n<\/div>\n<\/footer>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n\n<p><a href=\"https:\/\/www.cityam.com\/private-sector-bounces-back-but-rachel-reeves-leaves-hospitality-reeling\/\">Source link <\/a><br \/>\n<a href=\"https:\/\/dominiclevent.com\/contact-us\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-14\" src=\"https:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer-300x100.png\" alt=\"\" width=\"600\" height=\"200\" srcset=\"https:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer-300x100.png 300w, https:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer-150x50.png 150w, https:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer.png 600w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p><center><iframe loading=\"lazy\" src=\"https:\/\/www.google.com\/maps\/d\/u\/1\/embed?mid=1w4tN9mf5kVdBXUXTq2KvwE23NmpUzEna\" width=\"640\" height=\"480\"><\/iframe><\/center>&nbsp;<\/p>\n<p><center><iframe loading=\"lazy\" style=\"border: 0px #ffffff none;\" src=\"https:\/\/calendar.google.com\/calendar\/embed?src=sc635csnrm8h9s9lq0cad6vkss@group.calendar.google.com\" name=\"myiFrame\" width=\"600px\" height=\"3px\" frameborder=\"1\" marginwidth=\"0px\" marginheight=\"0px\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/center>&nbsp;<\/p>\n<p><center><\/center><\/p>\n<div>\n<div><img decoding=\"async\" src=\"http:\/\/www.dominiclevent.com\/wp-content\/uploads\/2018\/06\/Business_Solicitors_London.jpg\" width=\"600\" \/><\/div>\n<p>&nbsp;<\/p>\n<div>Dominic Levent Solicitors<\/div>\n<div>Email: Enquiries@dominiclevent.com<\/div>\n<div>Phone: 020 8347 6640<\/div>\n<div>Url: https:\/\/www.dominiclevent.com<\/div>\n<div style=\"display: none;\">cash, check, credit card, invoice<\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div>\n<div>1345 High Rd<\/div>\n<div>London, London N20 9HR<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The UK\u2019s private sector expanded at the fastest rate in nearly two years in the first month of 2026 but the reeling hospitality sector was still feeling the crunch from Labour policy. The latest Flash Purchasing Managers Index (PMI) from S&amp;P Global showed a major uptick in the all-important services sector, which is often seen &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/dominiclevent.com\/blog\/private-sector-bounces-back-but-reeves-leaves-hospitality-reeling\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Private sector bounces back but Reeves leaves hospitality reeling&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-275070","post","type-post","status-publish","format-standard","hentry","category-news1","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Private sector bounces back but Reeves leaves hospitality reeling - Dominic Levent Solicitors Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dominiclevent.com\/blog\/private-sector-bounces-back-but-reeves-leaves-hospitality-reeling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Private sector bounces back but Reeves leaves hospitality reeling - Dominic Levent Solicitors Blog\" \/>\n<meta property=\"og:description\" content=\"The UK\u2019s private sector expanded at the fastest rate in nearly two years in the first month of 2026 but the reeling hospitality sector was still feeling the crunch from Labour policy. 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