Britain ‘to lose a pub a day' as Labour's tax raid bites
The British Beer and Pub Association (BBPA) predicted that 378 pubs will shut across England, Wales and Scotland before the end of the year – up from 350 closures last year.
It will take pub numbers to their lowest level in a century, the BBPA warned.
The body, which represents the pub industry, attributed the expected jump in closures to cost pressures on landlords. Worryingly, it said that for every £3 spent on pints and food in a pub, £1 now went straight to the taxman.
It comes after Labour launched a raid on pubs and retailers in the spring, pushing up employers' National Insurance contributions (NIC) and lowering the threshold at which they needed to pay them.
The Chancellor also increased the minimum wage by 6.7pc to £12.21 an hour from April, while changes to business rates have pushed costs even higher for pubs.
The BBPA has previously suggested the changes cost each UK pub about £14,000 on average.
On Thursday, the industry group warned that hundreds of pubs were now preparing to close their doors, which would lead to almost 6,000 jobs being axed by the end of the year.
Nigel Farage, the leader of Reform UK, labelled it an 'absolute tragedy'.
He added: 'Every publican that I've spoken to – and I've visited nine over the weekend in Clacton, just to go and chat and see how they're getting on – every single person says that the NIC rise has taken away their profit. Every single one.'
Sir Tim Martin, the boss of pub giant Wetherspoon, said supermarkets were being allowed to undercut pubs and called for ministers to act.
He said: 'The consequent widening of the selling price between pubs and supermarkets will inevitably precipitate pub closures and dereliction. To save the pub industry, tax equality with supermarkets is a prerequisite.'
Emma McClarkin, BBPA chief executive, said: 'Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes. For many, it's impossible to make a profit, which all too often leads to pubs turning off the lights for the last time.'
She added: 'When a pub closes, it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy.'
Last orders
Andrew Griffith, the shadow business secretary, said: 'Labour have declared war on our pubs. They've taxed jobs, doubled business rates, tried to scrap the pint, and are now making flexible hours impossible.
'The Government has made an active choice to call last orders on hundreds of pubs.'
Clive Watson, the founder of City Pub Company, said more pub chiefs were deciding to hand back the keys after seeing their margins depleted, adding: 'Things are only going in one direction. All the cost pressures are eating away.'
Rachel Reeves knocked 1p off the pint in last autumn's Budget by lowering beer duty. However, Tory sources estimate that the average pub would still need to sell an extra 815,000 pints a year to recoup its losses from business rates and the rise in NICS.
The BBPA urged the Government to meaningfully reform business rates and help publicans offset 'eye-watering new employment and [packaging] costs'.
The extended producer responsibility scheme will come into force later this year and will shift the burden of paying for recycling from consumers through council tax bills to manufacturers themselves. It is expected to pile fresh pressure on pubs and restaurants, as suppliers seek to pass the higher costs on.
The extra levy will come at a time when pubs have already been scrambling to cope with soaring bills, with some closing earlier to offset staff costs. The Telegraph recently revealed some pubs were calling last orders as early as 9pm.
Brian Whiting, the owner of several rural pubs in the South East, said he was also closing pub kitchens earlier on some nights. He said the tax situation was 'worse than Covid' for the sector.
Meanwhile, others have had to push up prices to offset higher costs. The average price of a pint rose above £5 across the UK for the first time this year – up 21p on last year.
In London, the average price of a pint hit £6.75 last year, suggesting it could breach £7 this year.
The Treasury said: 'We are a pro-business government, and we know the vital importance of pubs to local communities and the economy, which is why we are supporting them with business rates relief, a 1p cut to alcohol duty on draught pints, capping corporation tax and are protecting the smallest businesses from the employer National Insurance rise – which is helping to fund the NHS.'
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