A Royal Boost: UK businesses expect £180m in revenue across Coronation weekend
Nearly, three-fifths of small business leaders (58 %) are expecting revenues to increase this quarter when compared to the first three months of 2023 – with an average revenue increase of 10 % this quarter year-on-year, thanks to a boost from the King’s Coronation weekend, according to the latest quarterly Barclays SME Barometer.
As business owners look forward to the celebrations, SMEs across the hospitality and leisure sector expect the long weekend to bring in an additional £180 million of revenue.
This follows a successful first quarter of the year (January 2023 – March 2023) for UK SMEs with more than half (56 %) reporting a rise in revenue from Q4 2022 and 60 % reporting a year-on-year rise in revenue from Q1 2022. Similarly, small business optimism is at the highest level in a year, with 43 % of SME leaders feeling positive about their future.
These figures are supported by data from Barclaycard Payments, which processes 1 in 3 debit and credit card payments in the UK, which shows a rise of 1.4% % in the value of payments to SMEs in Q1 compared to the same period last year.
The Coronation boost
As final preparations get underway ahead of the festivities, two in five (40 %) of hospitality businesses expect the Coronation weekend to provide a welcome boost to sales. This in part, is helped by a third (31 %) of businesses who want to take advantage of the additional licensing hours across the Friday, Saturday, Sunday of the Coronation weekend from 11pm -1am.
Furthermore, a quarter (25 %) of SMEs in the hospitality sector expect to see an increase in support for their business from the local community.
Investing for growth
Despite the increased optimism, wider concerns remain, as almost three quarters of SMEs (73 %) say they are worried about the impact that the cost of energy will have on their business. Furthermore, just over two-fifths (41 %) say they will need to increase their prices to cover the costs, which will impact their competitiveness.
Yet, many SMEs plan to plough investment back into their businesses, following the expected rise in revenues. Almost four in ten (39 %) businesses plan to increase their number of employees over the next quarter, resulting in an average of eight new recruits per business. This is the largest expected increase in new hires for SMEs since Q1 2022.
Colin O’Flaherty, head of SME at Barclaycard, said: “It’s great to see that businesses plan to make the most of the Coronation weekend and are hoping to see increases in revenue – as consumers take advantage of the long weekend and enjoy eating and drinking out.
“It’s unsurprising that in the immediate term, there are still wider concerns for businesses, whether that’s energy prices or underlying cost of living issues. SMEs are the lifeblood of the UK economy and with a series of bank holidays coming up in May – it’s more important than ever to make sure we support local businesses at every opportunity.”
