Latest news with #BritishBeerAndPubAssociation
Telegraph
3 days ago
- Business
- Telegraph
One in three hospitality businesses losing money after Reeves tax raid
One in three hospitality businesses, including restaurants and pubs, are operating at a loss in the wake of Rachel Reeves's tax raids, industry leaders have warned. A survey commissioned by the main trade bodies found that April's increase in employers' National Insurance had a devastating impact on the sector. UKHospitality said the Chancellor's decisions had added an extra £3.4 billion to firms' costs, meaning one-third were now losing money. Before the change, 11 per cent had said they were losing money. It warned that the effects were so dramatic that Ms Reeves' target of bringing the employment level up to 80 per cent was 'doomed to fail'. The survey, for UKHospitality, the British Institute of Innkeeping, the British Beer and Pub Association and Hospitality Ulster, also found that six in 10 firms have had to cut jobs, while 63 per cent have reduced the number of hours available to staff. In a joint statement, the trade bodies said: 'The Government seems to be setting itself up to miss its own targets with these most recent cost hikes for the hospitality sector. 'Hospitality is vital to the UK economy but is under threat from ongoing costs rises, which the April increases have only exacerbated. Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch. 'The Government must act urgently to mitigate for the changes to Employer NICs and also deliver on its promise of root and branch business rates reform. 'The overall tax burden on our sector must be reduced, including consideration of the long-standing ask of a VAT cut for the sector, so the hospitality industry can return to investment, job creation, and growth in communities the length and breadth of the country.' In last year's Budget, Ms Reeves increased the employer rate of National Insurance by 1.2 per cent to 15 per cent, adding £1 billion in costs for the hospitality industry. At the same time, increases in the minimum wage imposed £1.9 billion in costs. Another £500 million came from reduced business rates relief. The survey, undertaken in May, found that more than half of operators had been forced to cancel investment. Some 76 per cent said they had had to increase prices, and there was also a knock-on effect on consumers and the wider economy. Operators called for a reversal of the employer National Insurance rise, a VAT reduction for hospitality, and reforms to business rates. Ms Reeves decided to increase NI on employers last October, so that it did not break the letter of Labour's manifesto commitment not to increase taxes on working people. As well as the increase in the rate, the threshold at which it comes in has also fallen from earnings of £9,100 a year to £5,000. The Chancellor admitted the increase would be difficult for many firms to absorb. Last week, Tesco announced it would close some stores an hour early - 10pm instead of 11pm - after being hit by the rise in NI.
The Sun
3 days ago
- Business
- The Sun
Pubs and restaurants are ‘under threat' after Labour's tax hikes — with a third now running at a loss
PUBS and restaurants are being driven into the ground by Labour's tax hikes - with a THIRD now operating at a loss. A damning industry survey reveals the number of boozers at risk of closure has increased 11 per cent in the last three months. Landlords are now warning punters that putting up drink prices is the only way they can survive. The average price of a pint has already soared to £5.17 in Britain, and The Sun's Save Our Sups campaign is calling for more support for the countries' embattled locals. In a rare joint intervention, four trade bodies have come together today to warn hospitality is 'under threat' due to April's National Insurance rises and Business Rates whack. They are demanding urgent relief for the pub and restaurant sector which they claim was saddled with £3.4billion extra costs. As well as a third of bosses disclosing they are in the red, their survey also revealed six in 10 have been forced to cut staff to save money. Sounding the alarm are UK Hospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster. They said: 'Hospitality is vital to the UK economy but is under threat from ongoing costs rises, which the April increases have only exacerbated. 'Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch.' Meanwhile, a separate report showed private sector activity is at its weakest since 2022. The Confederation of British Industry also blamed Rachel Reeves' £25billion NICs hikes for hurting businesses. Locals Heartbroken as Auchenmalg's Only Pub, The Cock Inn, Closes Down 1
Daily Mail
3 days ago
- Business
- Daily Mail
Chancellor's Budget hangover leaves pubs in red
Rachel Reeves has been warned her tax hikes risk a wave of pub and restaurant closures as one in three hospitality firms are now loss-making. The proportion of businesses in the sector in the red for the first three months of the year was a sharp increase on the previous quarter. And six in ten firms said they have been forced to cut jobs to stay afloat, after £3.4billion in extra costs hit the industry in April. That was according to alarming research from industry bodies including UKHospitality and the British Beer and Pub Association. The survey also found that just over three in four operators have had to increase prices. In a plea for Government help, the groups said: 'Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch.' They said it was 'the first indication of the devastating effects of the changes that hit the sector in April'. At her first Budget last October, the Chancellor whacked the sector with increases in employers' National Insurance Contributions and the national minimum wage, as well as business rates changes, which all took effect in April. The industry has called on the Government to help by reversing the NICs increase and offering a VAT cut on food and drinks sold in hospitality venues. They also want to see the business rates system reformed. The figures come as a separate gloomy report from the Confederation of British Industry (CBI) found private sector confidence is at its weakest since September 2022 – at the time of Liz Truss's mini-Budget. Alpesh Paleja, deputy chief economist at the CBI, said firms were looking to the Government to take 'decisive action to restore business confidence and boost growth' as it prepares to unveil its spending review and industrial strategy. That was echoed by Make UK, which represents British manufacturers. In a separate report it urged Labour to pledge to slash industrial energy costs, which it said are now four times higher than in the US and 46 per cent above the global average. Boss Stephen Phipson said: 'If we do not address the issue of high industrial energy costs in the UK as a priority, we risk the security of our country. We will fail to attract investment in the manufacturing sector and will rapidly enter a phase of renewed de-industrialisation.'
The Sun
07-05-2025
- Business
- The Sun
Wetherspoons pint prices to rise by 20p in DAYS as Tim Martin blames Labour Budget tax hikes
THE boss of Wetherspoons has warned the price of a pint will go up by 20p in the coming days as breweries are already pushing through hikes on the back of costs pressures from the Budget. Sir Tim Martin said the government kept heaping pressure on pubs through higher taxes and costs. 1 The pub industry had already faced demands for higher prices from breweries, which had increased their prices by around 7p per pint in the past week, he revealed. "It means pints in pubs are going to go up by on average 15p to 20p this month", he said. The British Beer and Pub Association recently warned that the price of a pint is expected to exceed the £5 mark, up from the current average of £4.80. Breweries are reacting to increases in the National Living Wage and National Insurance contributions, which came into effect at the start of April. The National Living Wage rose by 77p an hour to £12.21, while the rate of employer National Insurance contributions increased from 13.8% to 15%. Plus, the threshold at which businesses begin paying this tax was reduced, dropping from £9,100 to £5,000 a year. Sir Tim warned: "The risk to the country is people either in the UK or coming from abroad will thing that it's too expensive to set up a business in the UK." The latest price hikes follow a similar move in January, when Wetherspoon told The Sun it had raised the prices of certain drinks and meal deals by up to 30p. Despite rising costs, however, the pub chain boss remained confident that customers would stick with their favourite drinks. Sir Tim said: "Guinness is pretty expensive but we are selling plenty of the stuff. Why are so many pubs and bars closing? "We have also introduced Jaipur ale, which is more pricey but doing very well. "Our Stella also outsells Bud Light, which is cheaper." The Wetherspoon boss confirmed he remains "very keen" on the idea of opening pubs overseas through the company's rapidly growing franchise business. The pub giant already operates a few franchised pubs on university campuses and seven pubs within Haven Holiday parks. "It's a good sign the holiday parks are doing very well so we think it will do well with people overseas, especially where Brits holiday." Sir Tim added that he is "open to anything," including launching pubs in airports and campsites. Wetherspoons revealed like-for-like sales had jumped 5.6% in the 13 weeks to April 27 this morning. How can I save money at Wetherspoons? FREE refills - Buy a £1.50 tea, coffee or hot chocolate and you can get free refills. The deal is available all day, every day. Check a map - Prices can vary from one location the next, even those close to each other. So if you're planning a pint at a Spoons, it's worth popping in nearby pubs to see if you're settling in at the cheapest. Choose your day - Each night the pub chain runs certain food theme nights. For instance, every Thursday night is curry club, where diners can get a main meal and a drink for a set price cheaper than usual. Pick-up vouchers - Students can often pick up voucher books in their local near universities, which offer discounts on food and drink, so keep your eyes peeled. Get appy - The Wetherspoons app allows you to order and pay for your drink and food from your table - but you don't need to be in the pub to use it. Taking full advantage of this, cheeky customers have used social media to ask their friends and family to order them drinks. The app is free to download on the App Store or Google Play. Check the date - Every year, Spoons holds its Tax Equality Day to highlight the benefits of a permanently reduced tax bill for the pub industry. It usually takes place in September, and last year it fell on Thursday, September 14. As well as its 12-day Real Ale Festival every Autumn, Wetherspoons also holds a Spring Festival. What else is happening at Wetherspoons? Despite rising cost pressures, Wetherspoon is set to open 15 brand-new pubs in the coming days, following a recent surge in sales. Six locations already have confirmed opening dates, which The Sun can exclusively reveal. Wetherspoon also announced that approximately nine more pubs are expected to open by July 2026. First on the list is The Conister Arms in Douglas, Isle of Man, set to open on Wednesday, May 14. Next is Walham Green at Fulham Broadway, South West London, opening on Tuesday, June 17. The Dictum of Kenilworth in Warwickshire will follow, opening on Wednesday, July 30. On Tuesday, August 26, The Sun Wharf on Tooley Street near London Bridge will welcome punters. The King of Essex in Basildon is scheduled to open on Tuesday, September 23. Finally, a new pub in Merchant Square, Paddington, is also set to open later this summer, though the exact date has yet to be confirmed. Wetherspoon is also launching a new "gourmet" food range from May 14, adding exciting new burgers to its iconic menu. Top of the list is The Big Smoke, a towering burger packed with pulled BBQ beef brisket, American-style cheese, and maple-cured bacon—offering a perfect balance of sweet and savoury flavours. For those who enjoy a bit of spice, the Buffalo Burger is sure to be a hit. It features a crispy fried buttermilk chicken breast, tangy blue cheese, fiery naga chilli sauce, and melted American-style cheese. Finally, cheese lovers can indulge in the Cheese Meltdown, a rich and creamy creation loaded with American-style cheese and topped with a blend of melted Emmental and Cheddar sauce. Full list of new pubs on the way WHETHERSPOONS is gearing up to open pubs in six brand-new locations, with the first set to welcome punters in just a few days. The pub giant is also planning to launch an additional nine pubs over the next financial year.
