Businesses in Birmingham's hospitality sector are navigating a challenging landscape as economic pressures mount. The West Midlands Night-Time Economy Commission released its inaugural report this week, featuring 25 recommendations designed to enhance the sector's vibrancy, accessibility, and safety.
The report highlights several factors impacting the night-time economy, including the Covid-19 pandemic, the cost of living crisis, VAT, and business rates. Commission members Henry Poultney, owner of Grace & James in Kings Heath, and Jack Brabant, who runs Herbert's Yard in Longbridge and co-founded Digbeth Dining Club, emphasized the importance of being involved in these discussions to drive change.
Henry Poultney remarked, "I've established several independent neighborhood hospitality businesses in South Birmingham. My role has been to amplify the issues affecting smaller independent venues across the city. The financial and economic pressures we face as a sector are immense, creating a tough environment for hospitality businesses. The health of the sector is the most critical issue; without thriving businesses, there is no sector to discuss."
He added, "The cost of living has certainly impacted consumer spending. We've reached a price ceiling, making it difficult to pass on rising costs for energy, product supply chains, business rates, national insurance contributions, and VAT. The cost of doing business is so high that we're constantly chasing our tails with cash flow pressures."
Jack Brabant noted, "We've operated large-scale street food events in Digbeth for 15 years and are seeing issues with extra costs. You have to be in the room to make a difference. We've been championing change for a long time, and the night-time economy is a big issue we're passionate about. There are other ways to look at things and make improvements. We're experienced operators who understand how to improve things by working with politicians and the Combined Authority. It's been a really difficult period, exacerbated by Covid and the cost of living, with people having less money in their pockets. But we have to be in the room to make a change, and hopefully, we can see some positivity."
The full West Midlands Night-Time Economy Commission report can be found on their website.
