Pubs in crisis after tax hikes and wage increases cost each boozer £14k EXTRA
BITTER FOR PUBS Pubs in crisis after tax hikes and wage increases cost each boozer £14k EXTRA
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PUBS are facing a crisis as tax hikes and increases to wages leave each one facing £14,000 in extra costs.
A jump in National Insurance (NI), the minimum wage, business rates and packaging taxes are costing the equivalent of 12 days' sales, the British Beer and Pub Association says.
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Pubs are facing a crisis as tax hikes and increases to wages leave each one facing £14,000 in extra costs (stock picture)
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Boss Emma McClarkin called the situation 'indefensible' and urged immediate Government action.
It comes after the BBPA warned that rising costs would push the average price of a pint above £5.
The organisation reckons they would add 21p as boozers are forced to pass on some of the inflationary pressure to customers.
Employer NI contributions rose from 13.8 to 15 per cent in April while the payment threshold dropped from £9,100 to just £500.
The National Living Wage jumped from £11.44 to £12.21 per hour.
These changes have seen insolvencies jump, with 67 pubs closing in April — the highest monthly figure since July 2024, according to accountancy firm Price Bailey.
Meanwhile, 8,156 (21 per cent) of UK pubs are barely staying afloat.
Matt Howard, head of insolvency at Price Bailey, said: 'The early signs are that the tax and minimum wage hikes which took effect in April are already tipping some struggling pubs over the edge.'
A Government spokesman said: 'We are a pro-business government.'
RATES 'FREEZE'
What is the Bank of England base rate and how does it affect me?
INTEREST rates are expected to stay at 4.25 per cent after inflation rose in April, economists predict.
Most believe the Bank of England's Monetary Policy Committee (MPC) will keep rates unchanged on Thursday.
Since last August, the MPC has gradually reduced rates from a peak of 5.25 per cent.
But inflation jumped to 3.5 per cent in April, later corrected to 3.4 due to data errors.
METRO BOOST
SHARES in Metro Bank have jumped by more than a tenth as investors welcome reports the high street lender had attracted a takeover approach from a possible buyer.
The London-listed bank was approached by investment firm Pollen Street Capital about taking it private.
The discussions are said to be in early stages.
Metro had a £925million rescue deal in 2023 and returned to profitability last year.
GREAT ESCAPES GO UNDER
TRAVEL firm Great Little Escapes has collapsed, leaving customers with axed holidays and uncertainty over refunds.
The Berkshire-based company, which also operated under the names Your Holidays and Tunisia First, ceased trading as an ATOL holder on Friday.
The Civil Aviation Authority issued a statement which said: 'We are currently gathering information from the company and will provide updates as soon as possible.'
Customers have been advised not to submit claims yet, as they will not be processed at this time.
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