How the British pub is facing its ‘toughest ever year’ after Reeves’s tax hike
How the British pub is facing its ‘toughest ever year’ after Reeves’s tax hike
Posted by theipaper
How the British pub is facing its ‘toughest ever year’ after Reeves’s tax hike
How the British pub is facing its ‘toughest ever year’ after Reeves’s tax hike
Posted by theipaper
17 comments
One in 50 pubs could be forced to [shut down for good this year](https://inews.co.uk/news/pub-bosses-call-jeremy-hunt-cut-taxes-10-close-each-week-losses-2916001?ico=in-line_link) as increased taxes, new employment laws and energy costs combine to make it the most difficult year yet for boozers, an industry leader has warned.
In an interview with *The i Paper*, Emma McClarkin, chief executive of industry group the British Beer & Pub Association (BBPA), warned that [the nations’ 45,000 pubs](https://inews.co.uk/topic/pubs?ico=in-line_link) were facing their “worst year ever”.
She claims the Government is introducing £650m of new costs to the industry from increases to [employer national insurance](https://inews.co.uk/news/hospitality-retail-job-hiring-paused-after-budget-national-insurance-rise-3392763?ico=in-line_link) contributions and the [minimum wage](https://inews.co.uk/topic/minimum-wage?ico=in-line_link) to soaring [business rates](https://inews.co.uk/topic/business-rates?ico=in-line_link).
She added that more than 13,000 jobs could also be lost if the sector is not given government support.
McClarkin said: “If closure rates accelerate as expected compared to recent years, then we might see one in 50 pubs close this coming year as costs increase and margins are squeezed beyond what can be endured.
“If this were to happen this would put at risk in excess of 13,000 jobs across the beer and pub sector.”
Last year, 353 pubs called last orders for the final time in England and Wales, while a further 56 saw their last chucking out time in Scotland. However, weekly closures have risen to record levels since the turn of the year and are set to climb further after the tax burden on rise at the beginning of next month.
“The beginning of April is a massive cliff edge, and a lot of publicans are really fearful,” added McClarkin. “This could be the worst year for pub closures ever.”
Of the £650m increase in government enforced costs, £200m is from the rise in employer national insurance contributions from 13.8 per cent to 15 per cent announced by [Chancellor Rachel Reeves in last autumn’s budget](https://inews.co.uk/inews-lifestyle/money/wages-stall-jobs-ni-rise-treasurys-watchdog-3352874?ico=in-line_link).
McClarkin claims a further £350m will be added to wage bills due to the rise in the minimum and national living wage, while a further £100m will be added to pubs’ business rates.
Changing entertainment tastes, changing lifestyles, probably mean there are less pubs needed than there once was. Also, I’m not sure opposing employment fairness laws and the minimum wage is really the best way to make their case.
Yeah I don’t believe this is your toughest year ever.
You’re telling me a tax increase is worse than COVID or 2008 or Brexit?
Really bored of the narrative that British people aren’t social unless there is a pub within 100m and that if we don’t have access to overpriced Carling we are all going to suddenly be depressed.
The reality is the world has changed, a significant portion of pubs haven’t changed or adapted with the times as evidence by the £1 raffle you get bothered with when you’re trying to have a drink and it’s finally catching up to them.
It’s cheaper to drink at home, better for your health to not drink at all and the sheer volume of pubs was never going to be sustainable long term even with how deeply ingrained drinking is in our culture. Factor in bell ends like Tim Martin advocating for Brexit which has had a knock on effect on public finances and disposable income it’s really not surprising they’re all shutting down.
Pubs have been on their arses for years, but you want to blame this on the current government?
Tories ruined the pub trade, by not building enough home and inflating the property prices , wile not increasing wages, Brexit also helped destroy the social life of working people.
Yeah trying to spin this as “its because of Labour” is being a bit thick.
Pubs have a host of issues with the main one being less people are going to them – because some people don’t drink, some don’t have the money, some don’t like the vibe and choose to spend their cash on other things – the list goes on.
Essentially it’s a shift in how people spend their time and in which third spaces.
The last time I went to a pub was in July last year. That was for lunch with my wife and kids. I prefer to drink at home with my wife and have a takeaway. Its cheaper, the company is much better, its not noisy, I can control what’s on TV and don’t need to pay for a taxi home.
The year the smoking ban came in was the start of the down fall
Does anyone know why pints are so expensive
Pubs have been dying for 20 years, but sure it’s labours fault.
Maybe it’s not that it’s hard, but it’s a supply issue. Too many pubs means thinned out competition.
It’s really just more pubs than customers to make a profit. Either reduce the pubs, or increase the customers
Can’t remember the last time I could afford to go to the pub.
Pubs have had their day.
The pub game is fcuked.
The last gov didn’t help at all.
This lot are adding fuel to the fire.
Seeing some on here is that it’s not labours fault…
Can they not reverse any decision that the last shower delivered then.?
As you were then. 👍
Reeves might be responsible for finishing off the English race – without booze to meet others and make unwise family planning decisions the population will continue to decline
inews, the same people who publish the daily mail, yawn
Pubs have been fucked for years. People have far better things than to sit in pubs getting litte change back from a tenner for a single drink. Perhaps if there were more free houses things might not be so bad
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