Norwich pub owner warns tax rises will costs typical landlord tens of thousands
The British Beer and Pub Association has warned that urgent Government action is needed to avoid more "completely avoidable" closures
A pub owner in Norwich is warning that planned tax increases in the Autumn budget will cost the typical landlord tens of thousands of pounds next year.
It follows research from an industry group showing that around six pubs shut their doors for good every week in 2024, meaning nearly 300 sites closed last year.
This then resulted in 4,500 job losses.
"We've got to cut our wages bill back"
Phillip Cutter is the owner of 'The Gardeners Arms' in Norwich:
"It's all going to cost us anywhere between £40k and £50k, next year. We're worried that we won't be able to do any sort of investment into our premises.
"With wages going up and our overheads, we've got to cut our wages bill back.
"Thankfully for us that doesn't mean any redundancies, but it will mean that my wife and I will have to do a lot more hours behind the bar.
"People have to use their pubs or they will be lost forever - we've seen a lot of that over the last ten to fifteen years. The Government needs to be proactive, rather than reactive when pubs close."
He says some of the city's major employers letting their staff 'work from home' does their trade no favours: "It means there are six thousand people who aren't going for a sandwich or a quick pint at lunchtime.
"It means they're not coming out for a drink after work or enjoying a Friday with us at the end of the month. That being said, the rural pubs benefit from that."
The research in greater detail:
The British Beer and Pub Association warned that urgent Government action is needed to avoid more "completely avoidable" closures.
Fresh figures from the trade body found that 289 pubs served last orders for a final time in 2024 in England and Wales.
The figures showed that London saw the highest proportion of its pubs shut down over the year, as 34 closed down.
The closures come amid pressure from higher borrowing costs and high energy bills for businesses, alongside a continued squeeze on household finances as mortgage and rent costs increase.
Pubs are set to come under further pressure when a raft of cost increases linked to the October Budget, such as higher National Insurance contributions and an increase in the minimum wage, come into force in April.
The trade body has warned that the cumulative impact of the Budget will create an extra £650 million in costs for the sector, worsening the outlook for publicans.
It urged the Government to overhaul the current business rates system of property tax for high street firms, including pubs, to help ease the burden on the sector.
Many firms are also due to face increased costs in April, due to a planned reduction in the business rates discount for hospitality, leisure and retail firms from 75% to 40%.
The latest data means that the number of pubs in England and Wales dropped from 47,613 in 2019 to 45,345 in 2024, the BBPA said.
"Government must urgently bring in meaningful business rates reform"
Emma McClarkin, chief executive of the BBPA, said: "The scale of these closures is completely avoidable because pubs are doing a brisk trade.
"Consumer demand is there, however, profits are being wiped out with sky high bills and pubs are facing yet more rates and costs come April.
"We're right behind Labour's mission to supercharge growth and can deliver this economic boost across the UK, but only if it is easier for pubs to keep their doors open.
"Government must urgently bring in meaningful business rates reform and phase in new employment costs so pubs can keep boosting the economy, supporting local jobs, and remaining at the heart of communities."
What's the Government said on this?
A Government spokesman said:
"Thriving pubs are often at the heart of our communities, and we're taking action to support them by introducing a permanent, new lower business rate from 2026.
"More than half of all UK employers will either see a cut or no change in their National Insurance bills next year, and we're doing more to support our high streets by tackling anti-social behaviour and empty properties."