Dorset pubs have lost an average of £14,000 in a matter of months
Tax increases and the rise in the minimum wage have cost each pub the equivalent of "12 days' turnover", according to latest figures
Pubs across Dorset are warning they are being “taxed into decline” after new figures revealed that increases to the national minimum wage, National Insurance contributions and cuts to property tax relief have cost the average UK pub £14,000 since April.
The Campaign for Pubs are calling for urgent government intervention as hospitality venues across the county face mounting financial pressure.
Lee Worsley, Dorset director of the Campaign for Pubs, described the current situation as a “triple whammy” of rising business rates, soaring employment costs and weak consumer spending.
He told us: “Employers’ National Insurance contributions and the national minimum wage increase have had a massive impact for consumer-used industries.
“Business rates have also increased. It’s hit small businesses at a time when consumer spending is not growing.”
Mr Worsley slammed the business rates system as “archaic and not fit for purpose,” claiming it’s a “burden many cannot afford”.
He added: “If businesses are less heavily taxed, they’ll reinvest, employ more people, and sell more - ultimately generating more tax through growth, not punishment.
“Right now, pubs need support, not more pressure.”
The government has pledged to reform the commercial property tax system and is expected to publish an interim report this summer.
However, landlords remain sceptical after April’s Budget saw a post-Covid property tax relief cut from 75% to 40%, sharply increasing bills for pubs, shops, and leisure venues.
Emma McClarkin, chief executive of the British Beer and Pub Association, called the government’s approach “indefensible,” urging ministers to speed up reform and offer immediate relief to struggling venues.
“We want a modernised business rates system that supports, not punishes, pubs,” she said. “The government must also mitigate employment cost rises and review the nonsensical and unfair Extended Producer Responsibility system.”
It comes as the average price of a pint in the UK could soon rise by over 20p, breaching the £5 mark for the first time, as landlords pass on soaring costs to customers.