The boss of pub giant Greene King has said the Government needs to overhaul business rates for the sector amid rising closures across the UK. Nick Mackenzie, boss of the 1,500-strong pub firm, said reduced property tax payments were needed to drive investment and new jobs after swallowing recent cost hikes.
It comes days after figures from the British Beer and Pub Association (BBPA) pointed towards a surge in pub closures due to heightened financial pressures. The body estimated that 378 pubs will close this year across England, Wales and Scotland after increased stress on the industry so far this year, resulting in more than 5,600 direct job losses.
Business rates system “unfair”
Mackenzie said the current system of business rates is “unfair” on the sector, focusing on revenues rather than profitability, which has heavily diminished across pubs in recent years amid sharp increases in operating costs. “Pubs are going to be around for the long term, but we need to address the unfairness in the system to allow them to flourish,” he said.
“It isn’t fair that the sector has 0.4% of the rateable property but pay 2.1% of the bills,” he added. “The sector is a massive employer and incredibly important for local communities, so we just feel it is important to underline how beneficial it is to tax pubs fairly.”
Investment plans scaled back