Pubs, bars and restaurants are among the UK’s smaller businesses expecting a £180 million boost thanks to extended licensing hours for the coronation weekend, according to Barclays.

Other parts of the economy will fare less well, however, as workers take time off.

Forecasters told Bloomberg that the additional day off next Monday could tip the economy into a minor contraction in the second quarter. “We have penciled in a 0.7 per cent drop in GDP in May with a rebound of a similar magnitude in June,” Dan Hanson, economist at Bloomberg Economics, said.

Beyond the coronation Barclays found that small firms (SMEs) are anticipating an average revenue increase of 10 per cent this quarter year-on-year but almost three quarters say that they were still worried about energy costs.

Colin O’Flaherty, head of SME at Barclaycard, said: “It’s great to see that businesses plan to make the most of the coronation weekend and are hoping to see increases in revenue as consumers take advantage of the long weekend and enjoy eating and drinking out.

“There are still wider concerns for businesses, whether that’s energy prices or underlying cost of living issues. SMEs are the lifeblood of the UK economy and with a series of bank holidays coming up in May it’s more important than ever to make sure we support local businesses at every opportunity.”