Vital community hubs will be lost without Govt. help- Norfolk brewer
The British Beer and Pub Association, which represents more than 20,000 pubs, estimates that 378 pubs will close this year
A brewer in Norfolk is warning that vital community hubs could be lost forever- if the Government doesn't step in.
One of Britain's pubs is set to close every single day this year- according to a pub and beer industry group.
"Particularly in Norfolk, many of these businesses are small ones which are vital for the community"
David Holliday is the owner of Moongazer Ales based in Fakenham:
He told us what the consequences could be if this forecast comes true:
"It's going to affect employment- which is bad for the Government as they are then going to get less tax revenue- so they're potentially cutting off their nose to spit their face there.
"With lots of these pubs that close, people think that somebody is going to come in and save them.
"However, that is not the case. Over last 18 months we have seen lots of pubs close and become something like a house.
"Particularly in Norfolk, many of these businesses are small ones which are vital for the community.
"But if you're making 35-40k profit and then your tax bill increases by that, the maths just doesn't add up.
"You can got a situation where rural pubs are paying more in their business rates than massive garage forecourts are in the city centre. It's a crazy situation that needs changing.
"Another simple solution would be to reverse the National Insurance contribution rises, handed to employers in the Autumn Budget".
The findings in more detail:
The British Beer and Pub Association, which represents more than 20,000 pubs, estimated that 378 pubs will close this year across England, Wales, and Scotland, which would amount to more than 5,600 direct job losses.
The BBPA said “it is not too late” for Government to solve the issue by swiftly reforming business rates for the sector, which is amongst the most highly taxed industries in the UK.
The trade association said reducing the cumulative tax and regulatory burden would help more pubs stay open, leading to more investment and jobs while also protecting spaces that, for many communities, are the only places left to gather.
"For many it’s impossible to make a profit"
Emma McClarkin, CEO of the British Beer and Pub Association, 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.
“When a pub closes it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy.
"However, it’s not too late to change this sad state of affairs. We know Government recognises the economic and social value of pubs and we’re not asking for special treatment, we just want the sector’s rich potential unleashed.
“We’re calling on Government to proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR costs, and cut beer duty."
With the beer and pub sector pouring more than £34 billion into the economy in one year alone and supporting more than a million jobs, the BBPA says Government must remain committed to supporting the sector.
The projected 2025 figures compare to 350 closures in 2024.
For every three pounds spent in a pub, one pound goes straight to the tax man, the BBPA stressed.
The BBPA warned that pub closures will have a further impact on those who are part of the supply chain, including farmers, brewers and other industries who form part of the sector’s wider eco-system.
What's the Government said on this?
Minister says they are cutting energy bills across hospitality and offering bespoke business rates relief to pubs.