The British Institute of Innkeepers has stated that one in four independent pubs could be forced to close due to changes announced in the Budget, with the majority reporting that rising costs will make their business “unprofitable

A survey from the British Institute of Innkeepers has revealed that measures announced in the Budget could see one in four independent pubs closing their doors, with 80 percent stating the cost increases will make their business unprofitable. 

According to member feedback, the proposed increase to Employer NICs and the minimum wage would see 75 percent of pubs cut staff hours, 40 percent reduce opening hours, and 33percent forced to make redundancies.

“The Chancellor’s Budget is devastating for our members,their teams, their pubs,and their communities,” said BII CEO Steve Alton. “Words from the government recognising the vital role of pubs in every community and the unique social value they bring are simply hollow.”

“The government’s actions will reduce employment,investment, and cause unnecessary business failure. Those that are able to carry on will have to raise prices in an attempt to offset these additional costs. Eighty-four per cent will increase prices, with 80 percent raising prices by at least10 percent, driving further inflation in the economy.”

The majority of BII members are small businesses employing fewer than 50 people, with half reporting annual turnover of less than£500,000, meaning “they do not have the resilience to‘ suck it up’ and need rapid action from government before it is too late.”

“We are calling on the Chancellor to reverse the planned increases of National Insurance Contributions and change in threshold for part time workers, alongside reinstating the business rates relief at 75 percent until full reform has been delivered.”