Pubs pin hopes on Christmas trading period amid post-Budget woes
The UK’s hospitality industry is gearing up for a bumper festive season, the first in four years not to be affected by pandemic restrictions or transport strikes.
The preparations come ahead of what is seen as one of the busiest times of year for pub operators across the country, a number of whom hope to see Christmas bookings ring in sales ahead of the new year.
However, it is also a year now riddled by post-Budget woes as many operators in the industry look to figure out what’s in store for them in 2025.
Kate Nicholls, chief executive of UKHospitality, said the trading period is looking hopeful, despite some of the looming challenges brought about by the Autumn Budget’s tax hikes.
“All the signs point to a positive Christmas for the hospitality industry this year,” Nicholls said.
She added: “Bookings seem to be ahead of this time of year and anecdotal evidence from operators suggests customer visits are holding up as we head into party season, a key trading period for the sector.
“In fact, this will be the first Christmas in four years that will be unimpaired by transport strikes or Covid restrictions – and it is a crucial one.”
Pub operator Marston’s, for example, has already seen Christmas bookings ahead of 2023 amid what it said has been a solid year of profit growth.
Navigating post-Budget fears
A number of industry leaders, however, remain concerned about what the real implications of the Budget tax hikes will be.
William Lees-Jones, who owns and runs Manchester-based ale producer and hospitality firm JW Lees, took to LinkedIn yesterday to reiterate his opposition to the changes to Business Property Relief (BPR) which he first voiced in the aftermath of the Budget.
The pubs boss also argued that reducing BPR would “lead to a fire sale of UK family companies” and that it would be a “potential disaster”.
Nicholls also argued the hospitality industry will face a £3.4bn tax bill next year due to an increase in employers’ National Insurance Contributions, which has caused pubs to scramble with prices and job securities.
This is why the government should introduce “either a new band for lower earners” or an “exemption for lower band taxpayers” working under 20 hours a week, Nicholls argued.
It is also “why it is vital people go out and support their local pubs, bars and restaurants this December,” Nicholls added.
Cheers to that.