Pubs in the UK are facing severe financial challenges. This follows the Chancellor’s recent Budget, which has led to increased business rates. Landlords warn that pint prices could exceed £18 due to rising costs, with some pubs already raising prices by 15-20% and cutting staff hours. The British Beer and Pub Association estimates that England could lose six pubs daily without government intervention.
They are not the only ones having major concerns, however. UK hotels are also reported to be grappling with stagnant profits despite increased demand. This is according to the RSM hotels tracker. Profits remained flat at just over 38% from September to October, with a slight decline in London from 43.3% to 43.1%. Average daily rates rose to £155.03 across the UK and £222.64 in London. A partner at RSM UK, commented that “Hoteliers are having to work harder but are getting less in return.” Rising National Insurance contributions and an upcoming minimum wage increase will put further strain on the sector. This will obviously impact future consumer spending.
iBOSS Comment:
Unfortunately the downward trend throughout the Hospitality Industry in the UK continues and has certainly not been helped by the recent Budget. If your business is one of the many suffering as a result, and you would appreciate professional, experienced advice and guidance then call Phil at iBOSS on 07876 503830 or complete the enquiry form on or web site and ask for one of our free 2-hour consultations.