A Devon pub landlord has revealed he pays himself just £2 per hour in a desperate bid to keep his business afloat, blaming a combination of government tax policies, soaring wages, and the enduring cost of living crisis.
The Personal Cost of Keeping the Doors Open
David Leaper, 53, who has run The Devon Arms in Torquay since 2019, told the Daily Mail he has been taking home approximately £100 for a 50-hour week for the past six years. He says this drastic personal sacrifice was necessary to navigate the pandemic and subsequent economic pressures.
"I pay myself last, once the bills and wages have been sorted and there’s not much left," Mr Leaper explained. He highlighted the severe impact of Chancellor Rachel Reeves’ policies, including increases in the minimum wage, national insurance, and business rates, admitting he has come close to shutting down at least twice.
A Sector Under Siege from Rising Costs
The financial strain on pubs is multifaceted. From April, the minimum wage for over-21s will rise to £12.71 per hour—meaning Mr Leaper's employees will earn over six times more than he currently pays himself. He noted that wages have jumped from 10% to 20% of his turnover, a shift he describes as "scary."
To cope, he has been forced to increase drink prices by 10p and plans another hike at the end of February. In a telling sign of the times, he has even resorted to buying stock from supermarkets like Tesco because it is cheaper than wholesalers, a practice he claims is common among publicans.
The situation is compounded by the alcohol duty increase in April and soaring operating costs, with breweries like Diageo raising prices and others weakening lagers to keep them affordable.
Business Rates Threaten a Final Blow
Perhaps the most immediate threat is the looming change to business rates. The government plans to scrap a 40% relief introduced after the pandemic, which could see pub rates rise by an average of 76% over three years. UK Hospitality estimates this will cost the average pub an extra £12,900 over that period.
In an apparent response to backlash, Rachel Reeves this week signalled a forthcoming announcement to soften the impact of the rate rises. However, for many, it may be too late. Last year, the 500-year-old pub next door to The Devon Arms, The Hole in the Wall, was shut down by HMRC after its 81-year-old landlord could no longer pay the bills.
Mr Leaper issued a stark warning: "If Labour doesn’t change things and start helping us out in the next 18 months I worry the pub industry will fall apart." He argued that pubs like his offer irreplaceable community value, hosting charity events and providing a vital social hub, even if they cannot compete with the £2 pints offered by large chains like Wetherspoons.
"Sometimes I lie awake at night thinking about it," he admitted, "but all I can do is get on with running the pub and hope somebody gives Rachel Reeves a shake and reminds her that we play such an important role in people’s lives."
