England’s Euro 2020 performance could rally consumer spending
Chancellor Rishi Sunak said he expects a “bounce” in consumer spending thanks to England reaching the Euro 2020 final.
England reached their first men’s football final in 55 years on Wednesday after they fought back to beat Denmark 2-1 after extra time.
Speaking to the BBC, Simon French, chief economist at Panmure Gordon, said the “feelgood factor” of England’s victories, alongside other factors, could “boost consumer sentiment”.
“UK households have a lot of pent-up savings due to the pandemic—we estimate about £20bn—and the speed with which they are spent is closely linked to consumer sentiment.”
“Winning the final, along with lots of other things, like reopening, the easing of restrictions, could help unlock many billions of pounds worth of additional spending.”
Simon French, chief economist at Panmure Gordon
He said the team’s performance alone could boost the hospitality sector by £150m thanks to punters watching games from pubs.
Pubs are expected to sell over 13m extra pints during England’s final against Italy, according to the British Beer and Pub Association (BPPA).
While the boost to trade will be welcomed, the BBPA said this figure is 4m pints short of what would have been sold without current coronavirus restrictions. This would translate into £9m less takings for pubs.
As restrictions are lifted, the BBPA is urging the government to lower VAT and business rates for pubs and also reduce beer duty, saying the taxes put on pubs and breweries are “unfair”.
Emma McClarkin, BBPA chief executive, said:
“After a long wait, the pubs we love should be restriction free from July 19th. Only when the restrictions are removed can our pubs recover, but to do so they need Government investment to build back better.
“We are backing the Long Live The Local campaign which celebrates our pubs but will urge the government to invest in their recovery. We are calling for reform of VAT, beer duty and business rates on pubs and breweries which will help build stronger communities, jobs, investments and a thriving British beer and pub sector we can be proud of.”