Publicans Condemn Government's 'Sticking Plaster' Rescue Package for Pubs
Hardworking publicans across England have branded the Labour government's newly announced aid package a mere "sticking plaster" for an industry in deep crisis. The criticism comes as ministers face mounting pressure to implement more substantial support measures for the beleaguered hospitality sector.
Details of the Government's Support Measures
The government has revealed that business rates for pubs in England will be reduced by 15% starting from April, a move that officials claim will save the average pub approximately £1,650. Following this initial cut, rates will then be frozen for the subsequent two years. Additionally, pubs will receive permission to extend their opening hours during the later stages of the men's football World Cup this summer, specifically for matches involving home nation teams.
This intervention follows persistent calls for government action, including the Mirror newspaper's long-running "Your Pub Needs You" campaign. While the measures have been acknowledged, critics argue that the projected savings—totalling around £80 million in the first year—represent "small beer" when compared to the monumental challenges currently facing the sector.
Publicans Voice Their Concerns and Struggles
Lana Bewry, landlady of the Golden Anchor in Nunhead, south-east London, expressed that times have become so difficult she is seriously contemplating leaving the business altogether. She disclosed that on some days, her takings have been as low as £59, an amount insufficient to cover even basic wage bills. Regarding the government's announcement, she stated: "This sounds fantastic but it is really a Band-aid. I am really, really considering if I can do this any more. I'm at the end of my tether. It's too hard, unnecessarily so. The utility bills are astronomical."
Rosie Nagaty, who operates the Old George Inn in Sykehouse, near Doncaster, alongside her husband John, calculated that the business rates discount would save her establishment roughly £50 per month in the initial year. She emphasised: "Pubs are closing across the UK every day. There are three that have closed this week in my local area. They haven't closed based on £50 a month, they have gone into the red by tens of thousands of pounds."
Matthew Todd, landlord of The Wonston Arms near Winchester, Hampshire, described the support as "woefully not enough." Meanwhile, George Greenaway, owner of the Tamworth Tap in Staffordshire—which was recently named the Campaign for Real Ale's National Pub of the Year for a record third time—revealed that his business rates bill is still set to increase from April. He remarked: "It's a sticking plaster, ultimately. It doesn't address the issue, and we have waited a long time for this. It's a bit of an insult." Mr Greenaway further warned of an "avalanche of closures" within the industry.
Calls for More Comprehensive Action
Publicans are now urging Chancellor Rachel Reeves to implement more decisive measures to reverse the tide of pub closures. Key demands include addressing VAT bills, soaring energy costs, and increased worker expenses resulting from recent hikes in employers' national insurance contributions and the minimum wage.
John Webber, head of business rates at property experts Colliers, noted that state aid regulations would significantly restrict assistance for businesses operating multiple pubs. However, he suggested that "if you are an independent you are stepping away from the abyss." It is important to highlight that other hospitality sectors, including hotels, restaurants, and cafes, will not receive additional support despite sharing similar concerns about escalating tax burdens.
Government and Industry Responses
Chancellor Rachel Reeves defended the government's actions, stating: "Pubs are where we come together—the backbone of our high streets, villages, and towns. But for a decade and a half they have been in decline—7,000 have vanished since 2010. That's why we're taking decisive action from April to save £1,650 for the average pub next year, and freezing their bills for two years after that on top of reviewing how pubs are valued for business rates over the long-term." She added that three-quarters of pubs will now see their bills remain unchanged or decrease from April.
Emma McClarkin, chief executive of the British Beer and Pub Association, welcomed the move: "We are pleased the government has listened to our concerns, and those of publicans, consumers, and MPs who rallied to defend our locals. This pub-specific package will stave off the immediate financial threat posed by accelerating business costs and will help keep the doors open for many."
Conversely, Ash Corbett-Collins, chairman of CAMRA, offered a more cautious perspective: "This short-term announcement is not the 'permanently lower business rates' that pubs were promised. While it is positive that the Chancellor has listened and announced extra discounts for pubs facing the threat of closure, it is short-sighted to think that today's statement will give publicans the certainty they need."
Understanding the Crisis Facing Pubs
The pub industry has been described as facing a "perfect storm" due to a confluence of challenges over many years. These include the indoor smoking ban, evolving drinking habits, intense competition from supermarkets offering cheap alcohol, skyrocketing energy costs, soaring business rates, and the lingering impacts of the COVID-19 pandemic. Consequently, despite Britain's global reputation for its pubs, they are disappearing at an alarming rate, with over 2,000 closures since 2020 and an average of two pubs shutting every day in the final quarter of last year alone.
Assessing the Impact of the New Support
The newly announced support—which also extends to live music venues—aims to mitigate what would have been a significant increase in business rates. For many publicans, such an increase could have been the final blow. Business rates for pubs are calculated based on rateable value, which considers assumed rents and turnover. Many establishments faced substantial hikes because the last revaluation occurred during the COVID-19 pandemic when trade was severely diminished.
While the support will undoubtedly help some pubs more than others, it is crucial to recognise its limitations. For smaller pubs with a rateable value up to £20,000 (£28,000 in London), the 15% discount effectively negates the originally planned maximum 5% increase. Establishments with rateable values between £20,001 and £100,000 should see their bills remain approximately the same, while others may benefit less. Importantly, the measures do not address the current high operational costs pubs face, nor do they include provisions that would enable pubs to lower prices for customers—a significant concern for cost-of-living affected patrons.
