King Charles will be crowned King of England on Saturday, May 6th. This is happening as the battle between the Bank of England and inflation continues, in which small businesses are the most hit as interest rates spike up to 4.25%, therefore increasing the cost of borrowing for businesses. Alongside this, the workers are demanding higher wages to cope with the cost of living crises, meaning the wage costs for businesses also increase, causing the prices of goods and services to increase, leading to fewer people buying goods and services and resulting in a slump in economic progress. Also, the UK’s GDP has fallen by 0.3%, which has meant that the UK has performed the worst economically out of all the developed countries. However, could the coronation save the UK and small businesses?
Well, the coronation has attracted a lot of attention both domestically and globally. This has meant that hotels have been more busy, with most reaching almost 93% capacity. This greater capacity has meant that employment has increased to meet these greater demands, and the greater demand has also brought in more profit for hotels, meaning that hotel workers have gained a stable income. This has been great for hotels, as they are still recovering from the lack of tourism due to lockdown, which meant that revenues fell.
The department store, John Lewis, has had great financial success since the coronation. The coronation bear that they made has been so popular among crowds that there’s a limit of two per customer.
“The demand for our Coronation Lewis Bear has been extraordinary, and now that our full Coronation Collection has launched online and in store, we’re seeing a real buzz from customers who are looking forward to celebrating the occasion.”
The seasonal buyer for the department store
The coronation has meant that goods produced for the crowning have been very popular and in high demand, so companies like John Lewis have made a lot more revenue. This greater revenue has been beneficial for John Lewis, as they had just made a loss of £234 million the year before as a result of the cost of living crisis.
The coronation has also been great for your local pub. It’s expected that due to the coronation, pubs will make £120 million. Again, this will be great, especially for smaller pubs, since it’ll mean that they regain the extra revenue lost due to lockdown and also the cost of living crisis, as people are less likely to go down to the local pub for a pint as it may be too expensive in the current economic climate.
Overall, the coronation will be a great economic stimulus and one that is required for the UK, especially for the smaller businesses that have been affected by COVID and the current cost of living crisis. Cash is King.
Written by Mueez Lodhi
Produced by Madhav Bhimjiyani