Although football didn’t come home this summer, the British public found solace in the local pubs, driving sales up by a fifth on each England match day of the Euros 2024 tournament. Our hearts may have sunk during the final game, but the nation has helped to keep the UK’s hospitality sector thriving over the past few months. The Euros Championship has injected a £3.1billion boost into the British economy, as football fever swept through the nation.
Although huge tournaments often spark negative imagery of hooliganism, the beneficial effect on the hospitality industry cannot be denied. Britain’s pubs and bars received a huge increase in sales, with the British Beer and Pub Association (BBPA) estimating that almost 20 million additional pints were set to be enjoyed during the Euros. This surge, valued at more than £93 million in extra sales, provided a welcome boost to a sector that has faced significant challenges in recent years.
Making it to the final not only lifted the morale of the country during its wettest summer on record, but it also spurred economic activity. Southgate’s squad reaching the final meant that an estimated £405 million was spent by football fans in the run up to the final. As fans flocked to local pubs to cheer on the national team, the retail industry also experienced a significant boost. Retailers are estimated to have received a £280.1million uplift, with the majority spent in supermarkets on last-minute food and drink for the game.
Increased spending in bars and pubs can also lead to a ripple effect across other sectors, benefiting suppliers, distributors, and other businesses. The British Retail Consortium (BRC) carried out a poll of 2,000 shoppers in May 2024 revealed that the nation’s love for football translates into additional purchases. Thirteen per cent of people planned to spend more on groceries, beer, wine and spirits, and takeaways while watching the Euros. Additionally, six per cent planned to buy a new television or electronic devices and four per cent expected to purchase official merchandise.
This surge in revenue has come at a critical time for many struggling businesses. Working closely with our client, Stephensons Catering, a leading supplier of catering equipment, disposables and tableware for the hospitality sector, we have our finger on the pulse for all of the latest industry news. Monitoring industry issues, it was clear that the previous Spring Budget failed to address crucial concerns for hospitality business owners, particularly regarding VAT and business rates. High inflation rates have pushed many businesses into a higher tax bracket, causing unexpected costs. With such a tax burden on small businesses, the Euros was a much needed boost to revenue.
One positive change saw the amount small businesses can earn before they must register to pay VAT increase from £85,000 to £90,000 in April, marking the first time the rate has increased in the past seven years. However, the UK is yet to see a reduction in the 20% headline rate of hospitality and tourism VAT, something that Henry Stephenson, managing director at Stephensons has passionately spoken about. Despite long-running campaigns from trade bodies and business owners, the hospitality industry continues to seek more support and relief.
Despite those soul-crushing last five minutes of the final where England conceded to Spain, this year’s Euros captivated the nation, and provided a crucial boost to pubs and entertainment venues across the country. While the Euros offered temporary relief, VAT still needs to be lowered for hospitality, leisure and tourism to drive demand and help businesses overcome rising costs. Whilst economic challenges persist in the UK, it is uplifting to hear positive statistics that bring hope for the industry.