Britain might lose 14,000 pubs except they’re thrown a lifeline says shock report
More than one third of cherished locals risk closure without ‘immediate intervention’ from Rachel Reeves says a damning new report
Britain will lose more than a third of its pubs unless the Chancellor throws the struggling sector a lifeline, a new report warns.
A staggering 35% of British inns – up to 14,000 cherished locals – risk closure without “immediate intervention” from Rachel Reeves’ Autumn Budget, says the British Institute of Innkeeping.
The trade body said just one in three hostelries was now profitable as a result of tax hikes introduced by the Chancellor in April.
It found three quarters of its 13,500 members – some 74% – had been forced to slash hours, while 70% had to let staff go.
The BII called on Ms Reeves to slash business rates, reduce VAT to 10% for pubs, reverse the hike in employers’ National Insurance Contributions and bring in financial incentives for boozers to hire under-25s and out-of-work Brits.
It said the policies would encourage pubs to increase investment and staff hours and hire more employees in a boost for the economy.
BII CEO Steve Alton said: “Since the Covid pandemic, Government has recognised the huge value of our pubs, with the Prime Minister recently stating that ‘when our locals do well, our economy does too’.
“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.”
Ahead of the November 26 Budget, the trade body’s report added: “The BII has urged the Chancellor to seize the opportunity to support and invest in the great British pub, stating that closures would result in lost jobs, lost tax revenue and immeasurable damage to communities in every town, village and high street across the UK.”
Meanwhile, the British Beer & Pub Association, said its research found nine in 10 MPs backed moves to help pubs.
It dubbed Ms Reeves’ forthcoming fiscal statement “a once in a generation Budget” for Britain’s beleaguered boozers.
BBPA CEO Emma McClarkin said: “When MPs from across the political divide are united in their recognition of the hospitality sector, it should be clear to the Chancellor that the correct thing to do at the Budget is to back pubs.”
While fellow industry body UKHospitality was this week backed by major players, including Butlin’s, Greene King, and Legoland and Alton Towers owner Merlin, in calling for “urgent action” from Ms Reeves.
An open letter, also signed by pubs, restaurants and hotels, said firms had been hammered by the impacts of Ms Reeves’ previous Budget.
It said it left the sector “taxed out”, businesses forced to close and over 80,000 jobs lost in the industry in a blow for young Brits seeking work.
While pub-goers and other consumers had been pummelled by price rises. The Treasury was contacted for comment.
