While the institution assured, despite market volatility, businesses could still access market funding, it urged banks to ensure buffers were in place and stated lenders should prepare for a “deteriorated economic outlook”.
Lack of incentives
This comes as the British Beer & Pub Association (BBPA) earlier this week called on the Government to introduce a permanent tax relief to encourage investment by businesses in response to the Government’s consultation on capital allowances.
BBPA chief executive Emma McClarkin said: “We find ourselves in a position as a sector where we are keen to get back to business, provide the best service and experiences for our customers and thrive at the heart of communities across the country but we are being held back by a lack of incentives to invest.
“Our pubs and breweries need to feel confident to spend their money, especially after the past two years and a permanent deduction would go some way to providing assurance and allow them to make investments to upgrade their venues, take on new properties and ultimately grow their businesses.”
New headwinds
A survey conducted by the BBPA, British Institute of Innkeeping (BII) and UKHospitality (UKH), last month also revealed profitability within the industry had plummeted as just 37% of participants were turning a profit while less than one-third (28%) were able to consider investing in their businesses due to the challenging economic climate.
Furthermore, the number of pubs in England and Wales was recently confirmed to have reached a record low, having fallen below 40,000 for the first time during the first half of 2022, according to real estate adviser Altus Group.
Altus Group UK president Robert Hayton said: “While pubs proved remarkably resilient during the pandemic, they’re now facing new headwinds grappling with the cost of doing business crisis through soaring energy costs, inflationary pressures and tax rises.”
