One pub a day could close this year because of rocketing costs, an industry body has warned. Around 5,600 jobs could be lost as a result of the knock-on effect to the supply chain, including brewers and farmers, from the estimated closure of 378 venues.
The British Beer and Pub Association (BBPA) has demanded a business rates cut for pubs to try to mitigate the damage.
The body – representing members that brew 90% of British beer and own more than 20,000 pubs – said such measures would slow the rate at which bars are closing.
Emma McClarkin, BBPA boss, 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.”
From April, business rate relief for retail properties – that came in following the COVID-19 pandemic – was cut from 75% to 40%, leading to higher bills for hospitality, retail and leisure businesses.
The rate of employer National Insurance Contributions also rose from 13.8% to 15% that month, and the wage threshold was lowered from £9,100 to £5,000, under measures announced by Rachel Reeves in the October budget.
The government has said it plans to reform the current business rates system, saying in March that an interim report on the measure would be published this summer.
The Treasury has insisted the Government was “pro-business” and backed boozers.
It said pubs were getting business rates relief and a 1p cut to alcohol duty.
