Pub owners in Liverpool are not impressed by the government’s proposed changes for their industryDan Haygarth Liverpool Daily Post Editor and Regeneration Reporter
00:01, 16 Oct 2025
Fiona Hornsby, owner of The Denbigh Castle pub in the city centre(Image: Colin Lane/Liverpool Echo)
Plans designed to allow pubs to thrive “won’t help in the slightest” according to those working in Liverpool’s hospitality industry. Last week, the government announced a bid to “cut red tape” around the way pubs operate, as it launched a review which could lead to old licensing rules being changed.
It came amid fears some historic venues have shut over noise complaints and it could lead to more venues being allowed to remain open until the early hours, as well as hosting more live music. Prime Minister Sir Keir Starmer said: “Pubs and bars are the beating heart of our communities”, and added that the government was “backing them to thrive”, to help grow the economy.
The boost the government said it will offer the sector has been met with an underwhelming reaction from the Liverpool pub owners who spoke to ECHO. They said it fails to address the key issues facing the hospitality industry, after a run of bruising years which presented challenge after challenge for pubs and has seen many shut their doors for good.
Fiona Hornsby runs three Liverpool city centre pubs – The Bridewell on Campbell Square, The Denbigh Castle on Hackins Hey and The Pen Factory on Hope Street. About the proposed changes, she told the ECHO: “The headline is longer hours but that’s the least-wanted option. Nobody wants to open longer, it’s just increased costs.”
The Denbigh Castle on Hackins Hey(Image: Colin Lane/Liverpool Echo)
Pubs which were able to navigate the various coronavirus lockdowns were hit with a sharp rise in costs soon after, as utility bills skyrocketed and the cost of living crisis meant customers had less money to spend.
Then, in April of this year, the employer National Insurance (NI) contribution rate increased from 13.8% to 15% and the threshold at which employers start paying National Insurance contributions reduced from £9,100 to £5,000.
That month also saw business rates relief for those operating from physical premises fall from 75% to 40%, increasing operating costs again for those running pubs, bars and restaurants.
Many in Liverpool’s hospitality scene also disagreed with the city council’s May decision to end free parking in the city centre after 6pm, saying it would make it harder to get customers through their doors and pose issues for their staff getting home.
That lack of free evening parking in the city centre reduces the appetite for later opening hours even further, according to Fiona. She said her staff cannot rely on Liverpool’s late night public transport options (currently there is only one Merseyside night bus route, from Birkenhead to Allerton via the city centre) to get home and now they have to pay for parking during later shifts.
However, she believes there are two things the government could do that would actually help. “The support everyone is after is VAT reduction and reducing NI back to what it was”, Fiona explained.
“They reckon 100,000 jobs could be lost in hospitality in a year – that’s since April and the NI rises. It doesn’t sit right with the government policy.
“Lots of young people work in hospitality, one hand they’re trying to get a load of young people back into work but then not helping an industry that so many people work in.
“These changes won’t help – not in the slightest. It’s not the help we asked for. If we got a VAT reduction and national insurance cut, we could look at our prices again.”
Those views were echoed by Si Vanderbelt, who runs The Little Taproom on Aigburth Road with Aggy Perreau. The craft beer pub opened just before the first lockdown in 2020 but has become a popular venue in the south of the city, overcoming the challenges presented by covid.
Aggy Perreau and Si Vanderbelt, owners of The Little Taproom on Aigburth Road(Image: Liverpool Echo)
Si told the ECHO: “It’s a little flurry of measures and half measures and hints – a relaxing on licensing laws. I suppose it is useful.
“Pubs are struggling for so many reasons – increased costs of beer, taxes, energy prices, but not a single pub in this country is struggling with licensing red tape. It’s not the issue they said it is.
“If you’re running a decent establishment that the locals approve of, getting a new licence is not difficult. It’s lengthy and a slightly tedious process to get that extended but it’s not that hard.”
Like Fiona, Si wants VAT on beers sold in pubs to be cut. All food and drinks sold in pubs currently include VAT at 20% but that rate was reduced during the pandemic.
Reducing it again would allow hospitality businesses to make more money and could allow for prices to go down, according to Si.
He said: “What we’ve been calling for is to charge a reduced rate of VAT on a pint. This would’ve been the boost we needed ages ago.
“If I charge £4.80 then 80p goes to the taxman. Cutting that so it’s 20p and that would help us hugely. It would mean I can offer savings to my punters.
“Everyone, including customers, is up against it at the minute – mortgages going up, energy bills going up, so going to the pub is more of a luxury for people.
“Also, I think something radical needs to be done with energy costs. Our bill has tripled since covid and keeping a beer cellar cold is not cheap. It eats electricity. Our bills are not sustainable.”
“But there isn’t a single pub struggling with licensing red tape. It doesn’t matter being able to stay open for an extra two hours if you can’t make a profit on your beer.”
Pub owners who spoke to the ECHO did not welcome the government’s proposals(Image: Getty Images)
The government, which hopes the changes would boost the economy, said its proposed measures would make it easier for pubs to extend hours and host events such as live music and street food nights. That aspect has been welcomed by Nick Small, who is the councillor for Liverpool city centre north, which contains a number of licensed premises.
Cllr Small told the ECHO: “I’m not against it – having economic growth as a licensing objective is sensible. We want to have a well-run, vibrant, hospitality sector. We’re largely there, we have purple flag (safety) status and we’re the third most visited city in the UK.
“We want to support that but I think we need to look at this in the wider sense. It can’t just be interpreted that if you open places for longer that means economic growth – that’s not always the case.
“We need to think about how we move up the chain. All of that will be crucial but we need to balance it with all considerations.”
But, as well as the potential to offer economic growth, Cllr Small believes public health should be a consideration in the licensing process.
He explained: “There are four licensing objectives currently. The government is proposing a fifth on economic growth but I think we should introduce one around public health – that is what we’re saying in the council.
“It’s what happens in Scotland – public health plays a role in licensing. That’s more around off-licenses and what’s going on in communities than in city centres. But I think that would give licensing authorities the power to consider everything.
“It’s all about getting the balance right. Everyone recognises how great Liverpool city centre is. It’s a great place to go out but we need to balance that with all aspects.”
Changes to licensing are not at the front of pub owners’ minds, however. Measures to get more customers into establishments would be welcomed but, for Gareth Morgan, venues will not be able to thrive until they are able to make more money.
Gareth, who runs Dale Street bar Dead Crafty Beer Company with his wife Vicky Morgan, called for the same changes as Si and Fiona. He thinks venues such as his are hurt by high levels of taxation.
Vicky and Gareth Morgan at The Dead Crafty Beer Co on Dale Street(Image: Colin Lane/Liverpool Echo)
He told the ECHO: “The biggest thing we need is VAT cuts, national insurance, night time parking. It’s just getting harder to get people in the doors. The designated driver can’t park for free in the evening any more.”
When asked if he felt Sir Keir’s government was backing the sector, Gareth responded: “You’re not backing hospitality – it’s being crippled. Removing red tape on licences isn’t going to help me get trade in my door.
“We just need our costs reduced from the government. As a small business we are a tiny tax collector. We think we’re doing well and then we get walloped with VAT.
“It’s a very half a***d attempt. It’s a headline grab. You’ve killed hospitality by raising national insurance and not cutting VAT – it’s just cost after cost after cost.”
About the government’s plans, Prime Minister Keir Starmer said: “Pubs and bars are the beating heart of our communities. Under our plan for change, we’re backing them to thrive.
“This review is about cutting red tape, boosting footfall, and making it easier for venues to put on the kind of events that bring people together. When our locals do well, our economy does too.”