UK Pub Industry on the Brink as Budget Looms
A staggering 11,000 pubs across the UK fear they could be forced to close within the next twelve months, according to a stark new poll. The survey, conducted by Survation for the UK Spirits Alliance and seen by LBC, reveals the desperate state of the hospitality sector as pressure mounts on Chancellor Rachel Reeves to offer a lifeline in the upcoming Budget.
The poll found that nearly three in ten publicans believe their businesses may not survive another year, especially if faced with further price hikes. An overwhelming 98% of landlords feel the government is not providing adequate support for the industry.
Publicans Voice Their Fears of Being Overlooked
Pub owners have expressed deep concern that they will be ‘overlooked’ in the Budget announcements. Beth Robinson, 41, who runs The Beeswing Inn in East Cowton, Yorkshire, told Metro that while cuts to VAT would be welcome, she remains sceptical. ‘Big cuts to VAT would be well-received across the pub industry. Our overheads are huge – so reductions are what we’re looking for,’ she said.
However, Robinson questioned whether a speculated 5% cut would be sufficient to make a real difference, suggesting it might not be enough for pubs to pass savings on to customers and encourage them back through the doors. She highlighted that ‘a trip to the pub has become a luxury people can’t afford,’ and credited the VAT reductions during the COVID-19 pandemic for helping many venues survive.
For Robinson and countless others, the past year has been punishing, with both the frequency of visits by regulars and the amount they spend per trip declining significantly.
‘More Difficult Than Covid’: The Crushing Financial Pressure
Steve Orme, a pub owner with 11 years of experience who runs The Red Lion in Shepperton, The Golden Grove in Chertsey, and The Rose & Lion in Twickenham, echoed these concerns. He stated that the past 18 months have been more difficult than the Covid period.
Orme pinpointed the increase in Employers’ National Insurance this year as a particular blow, describing it as having ‘kicked us all in the teeth.’ This has led to pub owners shedding staff, a contributing factor to rising unemployment. ‘Humans are too expensive to employ,’ he added bluntly.
To adapt, many pubs have pivoted to offering restaurant-quality food and hosting activities to maintain footfall. Orme also highlighted the stark price disparity that is driving customers away: ‘You can pick up four cans of beer in the supermarket, while at the pub it might cost you £6.50, £7, which is a lot of money.’ He warned that further financial pressure will force price increases, pushing more people to drink at home and eroding the vital social experience pubs provide.
This bleak outlook is compounded by reports that Chancellor Rachel Reeves is considering another 3.6% hike in alcohol duties this month.
Calls for Action and Government Response
The Liberal Democrats have urged the Chancellor to intervene by slashing VAT by 5% for hospitality businesses. Daisy Cooper, the party’s deputy leader, argued that the simple joys of life are becoming unaffordable for many. ‘High street businesses have been hammered by the jobs tax and higher business rates bills,’ she said, ‘so it’s no wonder that so many treasured pubs, restaurants and cafes are boarding up their shopfronts, taking with them vital jobs and local community spaces.’
In response, a Treasury spokesperson defended the government's record, stating: ‘Pubs, restaurants and cafes are vital to local communities. That’s why we’re cutting the cost of licensing, lowering their business rates and helping more hospitality businesses offer pavement drinks and al fresco dining, on top of cutting alcohol duty on draught pints and capping Corporation Tax.’
As the Budget announcement approaches, the UK's pub landlords are waiting to see if this reassurance will be backed by the tangible financial support they insist is needed to prevent widespread closures.
