Will the Royal Jubilee be enough to combat SMEs’ rising bills?

As the country starts to put up their bunting and organise street parties ahead of the Royal Jubilee, many British businesses will be gearing up for one of the busiest weekends since before the pandemic.

Amid the doom and gloom of rising inflation and bills, the long weekend is set to be a welcome boost for the majority of businesses. 

The celebrations will rake in more than £75million for the hospitality industry alone, research by Barclays shows.

Well-known brands are already capitalising on the celebrations with limited edition products while pub chain Greene King is offering pints for 6p.

Nearly half of independent hospitality firms also expect a rise in sales this weekend and 60 per cent expect to see revenues rise this quarter compared to the same period last year.

On average, small firms expect to see a 10.4 per cent rise between April and June 2022 compared to the same period last year. 

The hospitality and leisure sector is predicting a 34.7 per cent increase, a significant recovery for a sector that had only just opened again this time last year.

Ross Robinson, owner of The Queens Hotel in Lytham, will be hoping to attract locals by holding a Jubilee garden party on Friday.

‘Moving the May bank holiday and adding an extra day to celebrate The Queens Jubilee should give The Queens Hotel an opportunity to capitalise on what should be a period of warmer weather.

‘The extra bank holiday enables our guests to celebrate with their friends and family at home while still having an opportunity to visit local venues such as ours.’

While pubs and restaurants might enjoy a rise in sales, the retail sector is also looking to get a boost from the celebrations.

‘Sales of bunting, party hats and party food have seen a massive increase,’ says Dr Jackie Mulligan, founder of digital platform ShopAppy. 

‘This is a welcome boost to small businesses who always treat their customers like royalty – particularly pubs, bars and cafes who will see customers making the most of the bonus days off.

‘UK holiday towns will be busy so I hope whether customers are staying home or travelling within the UK that they support the many family businesses that are the crowning glory of our town and city centres.’

But the Jubilee celebrations aren’t being welcomed by all small business owners.

‘On the run up to the Jubilee weekend we have a 15 per cent discount code running across our website. 

‘This is in a desperate attempt to boost sales,’ says Julia Usher, managing director at Ashes Memorial Jewellery.

‘Bank holidays are always tough for my ecommerce jewellery business as people’s attention is focused away from online retail and luxury goods. 

‘The Jubilee weekend will certainly not be good for us. I expect to see sales plummet from Thursday onwards.

‘Sadly the additional bank holiday is another crushing blow the retail sector could have done without.’

Small businesses have endured an immensely difficult period after locking down for two years. 

Now they are confronted with supply chain issues, soaring bills, and inflation nearing double digits. 

Nearly three quarters of SMEs surveyed by Barclays said that these issues are a long-term concern for their business with particular concern that consumer confidence has been severely affected.

Over half worry that rising costs will see spending fall and a quarter fear it will make them less competitive as they are forced to increase their own prices.

While some business owners will welcome the boost from the bank holiday, 46 per cent are pessimistic about the outlook for the economy and two fifths say the current environment is unstable.

Ross Robinson adds: ‘We hope the public use this time to support businesses in their local area, to help boost sales during a period where general costs of running a business are at the highest they have been for many years.’