A study from the UK Spirits Alliance has found that 11,000 UK pubs believe they will not be able to remain trading beyond 12 months if costs are increased in the upcoming Budget, with a separate study from the BII predicting closures in even greater numbers. Is the great British pub dying on Rachel Reeves’ watch?
A survey from the UK Spirits Alliance has found that 11,000 UK pubs fear they will close within 12 months if the Chancellor increases costs such as alcohol duty and MGD in the upcoming Budget, with landlords urging action to reduce VAT and Employer NICs.
The study comes alongside a separate report from the British Institute of Innkeepers, which found 14,000 venues expect to have to cease trading in the same timeframe without “immediate intervention.”
“Since the Covid pandemic, the Government has recognised the huge value of our pubs,” said BII CEO Steve Alton. “This recognition must now be matched with urgent action at the Budget to drive local economic growth by reducing the unfair tax burden.”
“This will create skilled jobs and allow pubs to continue to serve their communities. Without it, many simply will not survive.”
The BII’s report found that 74 percent of its 13,500 members had been forced to cut hours, while 70 percent had to reduce staff numbers, while the UK Spirits Alliance survey found that 98 percent of landlords believe the Government is not supporting the industry.
Speaking to the Metro, Beth Robinson, who runs The Beeswing Inn in Yorkshire, said “big cuts to VAT would be well-received across the pub industry. Our overheads are huge – so reductions are what we’re looking for.”
“The problem is that a trip to the pub has become a luxury people can’t afford. But the cuts in VAT during Covid were the reason why so many of us survived through the pandemic.”
A budget for growth or death?
Steve Alton said… “…urgent action at the Budget [is needed] to drive local economic growth by reducing the unfair tax burden.This will create skilled jobs and allow pubs to continue to serve their communities. Without it, many simply will not survive…
