Key Takeaways:
- The King’s Coronation weekend is expected to bring a £120 million boost in sales to the UK hospitality industry, particularly pubs.
- Small hospitality businesses have been hit hard during the pandemic, losing an average of £40,000 each, and pubs have been closing at an alarming rate.
- While the boost in sales is welcome, more needs to be done to support the long-term prosperity of the UK hospitality industry.
King’s Coronation Weekend Set to Boost UK Hospitality Industry
As the UK prepares to celebrate the coronation of its new king, small business owners in the hospitality industry are looking forward to a much-needed boost in sales. According to the Beer and Pub Association, pubs across the country are expected to see a £120 million increase in sales over the long bank holiday weekend, with an extra 17 million pints predicted to be poured compared to a typical weekend.
Alan Thomas, UK CEO at Simply Business, one of the UK’s largest providers of small business insurance, commented on the positive effect the King’s Coronation will have on the UK hospitality industry. “Few have been hit harder over the last few years than small hospitality businesses, who have lost £40,000 each on average due to the pandemic – almost double that of the average SME,” he said. “Pubs continue to close at alarming rates – a staggering 1,800 since 2019 – and are at their lowest number on record.”
With the boost in sales expected to provide a welcome break for small hospitality businesses, many are also looking to the government for additional support to ensure the long-term prosperity of the industry.
The Impact of the Pandemic on Small Hospitality Businesses
Small hospitality businesses have been among the hardest hit by the COVID-19 pandemic, with many struggling to stay afloat as restrictions on indoor dining and drinking have forced them to close their doors or operate at reduced capacity. According to a survey conducted by Simply Business, small hospitality businesses have lost an average of £40,000 each as a result of the pandemic, compared to an average of £22,000 for small businesses in other industries.
The impact of the pandemic has been particularly acute for pubs, which have been forced to close for extended periods of time and have seen their customer base shrink as a result of social distancing measures. According to the Campaign for Real Ale (CAMRA), more than 1,800 pubs have closed in the UK since 2019, and the industry is now at its lowest number on record.
While the UK government has provided some support to small businesses during the pandemic, including loans and grants, many small business owners in the hospitality industry feel that more needs to be done to ensure their long-term viability.
Looking Ahead: What More Needs to Be Done?
As the UK celebrates the coronation of its new king, many small business owners in the hospitality industry are looking to the future and hoping for more support from the government. While the boost in sales provided by the King’s Coronation weekend is certainly welcome, it is unlikely to be enough to ensure the long-term prosperity of small hospitality businesses.
One area where many small business owners would like to see more support is in the form of reduced business rates. Business rates, which are based on the value of a property, can be a significant expense for small businesses, particularly those in the hospitality industry. According to the British Beer and Pub Association, pubs in the UK pay an average of £140,000 per year in business rates, and many small business owners feel that this is an unfair burden, particularly given the challenging economic environment.
Another area where small business owners would like to see more support is in the form of reduced VAT rates. While the UK government has temporarily reduced VAT rates for the hospitality industry during the pandemic, many small business owners feel thatthis measure should be made permanent. The reduced VAT rate, which currently stands at 5%, is due to expire in September 2021, and many small business owners are calling for it to be extended or made permanent. They argue that a lower VAT rate would make it easier for them to compete with larger businesses and provide better value to customers.
In addition to these measures, small business owners in the hospitality industry would also like to see more support in the form of grants and loans. While the UK government has provided some support in this area during the pandemic, many small business owners feel that more needs to be done to ensure their long-term viability. They argue that grants and loans would help them to invest in their businesses, hire new staff, and adapt to changing market conditions.
Conclusion
The King’s Coronation weekend is set to provide a much-needed boost to small hospitality businesses across the UK, but more needs to be done to ensure their long-term viability. With pubs closing at an alarming rate and small business owners struggling to stay afloat, many are looking to the government for additional support in the form of reduced business rates, VAT, and grants and loans.
As the UK celebrates the coronation of its new king, it is important to remember the vital role that small businesses play in our economy and to support them in any way we can. Whether it’s by visiting your local pub or restaurant, shopping at a small business, or advocating for policies that support small businesses, we can all play a part in ensuring the long-term success of the UK hospitality industry.
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