A “devastating” survey from the British Institute of Innkeeping has found that 90 percent of UK landlords are planning to increase drink prices in response to the Autumn Budget, with just one in three pubs currently reporting profit.
The British Institute of Innkeeping has found that 90 percent of pubs will be forced to increase drink prices in response to the Autumn Budget, with 71 percent increasing food prices and 45 percent planning to reduce opening hours.
The “devastating” survey of 205 landlords revealed that just one in three pubs are currently making a profit thanks to the impact of the 2024 Budget, and the latest measures could mean less than 10 percent will be profitable come April.
“We have been crystal clear that our pubs are not failing businesses, but that Government policy and over taxation is holding back their full potential,” said BII CEO Steve Alton. “Fair taxes unlock investment, skilled employment opportunities and growth in every community.”
“Instead, these further, unfair taxes are devastating viable small pub businesses, threatening their future and that of all the people who rely upon them.”
The changes to Business Rates relief and increase in rateable values following revaluation have added “thousands” to pub outgoings, added Alton, with publicans forced to counter the additional rises in National Minimum Wage, National Living Wage, and alcohol duty with a combination of cost cutting measures.
According to the survey, 80 percent will cut staff hours, 41 percent will cut services offered in the pub, such as offering food, and 42 percent will make staff redundant.
“The Prime Minister stated that ‘Pubs…are the beating heart of our communities. When our locals do well, our economy does too,’” said Alton. “This budget has ripped the heart out of those communities.”
A pricier pint
Steve Alton said… “The Prime Minister stated that ‘Pubs…are the beating heart of our communities. When our locals do well, our economy does too. This budget has ripped the heart out of those communities…
