Fuller’s have enjoyed a good half year performance, albeit they’ve had to work very hard for it. Just how hard is highlighted by the £8m hit it’s taken on rising labour costs – and the fears of more to come in the upcoming budget. Little wonder then that executive chairman Simon Emeny is “frustrated by the lack of a clear plan to deliver the growth the Chancellor claims to be seeking.”
Fuller’s has raised prices across parts of its estate after an £8m jump in labour costs, prompting its executive chairman to warn that rising taxes and wage pressures are forcing many pubs to reduce opening hours.
Simon Emeny said the company had been hit hard by this year’s increases to the national living wage and employers’ National Insurance Contributions, measures he argues are adding strain to a sector already struggling with high operating costs. He criticised ministers for offering “a lack of a clear plan to deliver growth”.
Speaking ahead of the Chancellor’s Autumn Budget, he highlighted the pressure on pubs nationwide. “Costs have increased materially from last year so many businesses look at opening hours – so you quite often see pubs closing early, you see pubs closed in the early part of the week.
“Ultimately that is not good for the Chancellor. The Chancellor needs to raise tax revenues. If pubs are closing or are closed for longer hours that’s impacting the revenues that she gets.
“We do look carefully at the Budget in two weeks’ time and have an expectation that there will be some measures from the Chancellor that will drive the economy back into meaningful economic growth.
“We can’t tax ourselves to victory.”
Emeny also said he hoped the government would “avoid further punitive financial measures” in the upcoming Budget, stressing that the hospitality sector needs stability to recover.
On that point, Fuller’s were making some contribution to growth: in its half year results announced this week, pre-tax profit was up circa 7pc to £22.5m from £17.6m; revenue and other income up to £207.5m from £194.1m; drink like for like sales also rose by 6.5 percent and, budget willing, the public are looking to celebrate Christmas with party bookings 16 percent ahead of last year.
Put growth first
Simon Emeny said……. “We do look carefully at the Budget in two weeks’ time and have an expectation that there will be some measures from the Chancellor that will drive the economy back into meaningful economic growth. We can’t tax ourselves to victory……
