Hospitality businesses across the Harrogate district say they are optimistic about their prospects over the coming months.
As Chancellor Rishi Sunak prepares to unveil the details of his Budget tomorrow, restaurant owners and business leaders say the summer could see a bounce back in their fortunes after months of uncertainty.
With restrictions set to ease, local businesses are anticipating high demand as case numbers fall and the vaccination programme brings renewed confidence.
Jo Straker, who runs William & Victoria restaurant in Harrogate with her husband David, said there was “light at the end of the tunnel” after a very difficult start to the year:
“We expect to be busy when we reopen and I think the local economy will be buoyant with people desperate to socialise, have some pampering, go shopping, enjoy sport, culture and freedom of going further afield. We will be more appreciative of the things we couldn’t have during lockdown and desperate to get out and enjoy living life again.
“The summer is looking promising with many choosing to holiday in Britain this year. Harrogate and North Yorkshire will be a big draw for domestic tourism so I am optimistic that the local economy will start to recover if everything goes to plan, we take the necessary precautions to keep each other safe and get the financial support to help us recover.”
Mrs Straker also said last summer’s Eat Out to Help Out had been positive for the restaurant, though it meant the beginning of the week was very busy before a drop-off in demand on Thursday. She said she hoped for a similar scheme including more days of the week, or perhaps a voucher scheme which would encourage people to spend locally over a period of time.
David and Jo Straker, owners of William and Victoria restaurant in Harrogate
There are also broader measures across all sectors which she said would help the business to survive the coming weeks and months.
“We are hoping, and expecting, the Budget to announce the continued VAT reduction at 5% and business rates holiday as well as an extension to flexible furlough.
“All these have been critical to the survival of the business. Takeaway keeps us ticking along but it’s not enough to cover all our fixed costs.
“We’re expecting Corporation Tax to go up. Although this is something we usually dread, it won’t have a huge impact on our business this year since we have only been able to open for five months of this financial year and that’s with considerable restrictions, so would be fortunate to break even.
“Despite all this, we are optimistic for the future and a full recovery over time with the correct financial help put in place and the continued support of our customers.”
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Across the Harrogate district, as well as businesses directly involved in hospitality, there are many which work with them and have been hit by their lack of trade in the last year. Paul Berwin, senior partner at Berwins solicitors, said it was not just the hotels, cafes and restaurants that needed help to get back on their feet.
“Those businesses which have been unable to operate, or only able to do so spasmodically, need proper funding so that reopening is sustained, and beneficial.
“With a local economy so heavily focussed on hospitality and tourism, which I think will recover, the businesses serving those sectors need to be helped.”
The latest statistics show that the Harrogate district is bucking the national trend in terms of employment, with the number of people out of work sitting at 3.7% compared to a UK-wide figure of 6.2%.
For Teresa Bowe, owner of CCF Accountancy, this could help to support the hospitality industry as it tries to get back on its feet. She said:
“From what I have seen in my own clients’ situations, there are more people better off or the same, rather than worse off as a result of the covid situation.
“I think a lot of working practices that came in as a result of the lockdowns will stay, such as flexibility on working. I expect things to bounce back reasonably quickly.
“I think the prospects for the next 12 months are good, assuming that the virus is kept at bay.”
