Pub Industry Leader Voices Budget Concerns
The head of one of Britain's largest pub chains has launched a stinging critique of the Chancellor's economic strategy, warning that the hospitality sector faces severe pressure from impending tax increases in the forthcoming Budget.
Simon Emeny, executive chair of Fuller's, expressed deep frustration at what he described as a "lack of clear plan" from the government to deliver the economic growth it claims to be seeking. Speaking ahead of the Budget announcement, Emeny stated that the country needs "new ideas, new thinking" to drive sustainable economic success.
Hospitality Sector Under Severe Pressure
The criticism comes amid alarming statistics revealing the hospitality industry's precarious position. According to recent insolvency disclosures, pub closures in Britain have reached record levels in 2025, with 449 pub and bar businesses appointing liquidators or administrators in the first ten months of the year.
This represents a five percent increase compared to the same period last year and more than triple the number recorded in 2015. Industry experts point to a combination of factors creating this crisis:
- Rising taxes and National Insurance Contributions
- Increasing minimum wage requirements
- Heavy Covid-related debts still affecting businesses
- Business rate hikes implemented in last year's Budget
Kate Nicholls, chair of trade body UK Hospitality, emphasised the severity of the situation, noting that many businesses are "running out of road" as income fails to cover escalating operational costs.
Financial Impact and Industry Response
Fuller's has already felt the direct financial impact of previous government decisions, taking an £8 million hit from National Insurance Contribution hikes that came into effect in April. The company's experience reflects broader industry concerns about further punitive financial measures in the upcoming Budget.
Other major players in the sector are expressing similar apprehension. Pub chain Wetherspoon recently announced it is becoming "more cautious in its outlook" as the industry braces for additional challenges. Founder Tim Martin highlighted how increased labour costs are dramatically widening the price differential between pubs and supermarkets, causing customer dissatisfaction.
Despite these challenges, Fuller's reported some positive financial news, with a 6.9 percent rise in sales for the six months to end September, reaching £208 million. The company also celebrated a 16 percent increase in Christmas party bookings compared to the same period last year and raised its interim dividend by 6 percent to 7.85p.
The firm bolstered its finances through the £17.2 million sale of the Mad Hatter hotel in Southwark, which will form part of the major new Blackfriars Road development. Fuller's shares showed modest gains in early Wednesday trading, rising 0.5 percent to 106p.
Emeny, who became chairman of Fuller's in July following Michael Turner's retirement, concluded with a note of cautious optimism: "I genuinely hope the Government succeeds in that and succeeds quickly." His comments underscore the hospitality sector's urgent need for supportive government policies to navigate the current economic challenges.
