Cardiff pub landlord: 'businesses closing left, right and centre' due to tax rise
Research has found the average cost of running a pub has gone up by £14,000 pounds
A landlord in Cardiff says he's worried for the the future after new research reveals the average cost of running a pub has gone up by 14-thousand pounds.
Tax increases like national insurance contributions, and a minimum wage hike, are wiping out the equivalent of "12 days' turnover" - according to the British Beer and Pub Association.
Nick Newman works for Croeso Pubs in South Wales, he says:
"If you just want to look at these increases in Employers National Insurance, you know, we were afraid of them before they came in. And, lo and behold, as they've been introduced, it's it's it's increased cost massively.
"Along with all the other price increases we've got to deal with in various business challenges, it just makes it ex an extremely difficult environment to be successfully operating in".
Nick believes independent pubs across the country are being affected by a rise in costs:
"If you go north to the valleys, I've got colleagues up there who I I know are feeling the pinch.
"It is tough, and there are businesses closing left, right, and centre."
From April, employers have had to pay 15% in national insurance contributions (NICs) on salaries more than £5,000, compared to 13.8% on salaries at £9,100.
Those eligible for minimum wage aged 21 and over will get a 6.7% pay increase, from £11.44 to £12.21 per hour, while 18 to 20-year-olds will receive an uplift of £1.40, from £8.60 to £10 per hour, under the changes.
Nick says this rise in NI and minimum wage is putting a financial strain on pubs.
"They are the social centres of the community.
"There's this other side of the business, which is not so great for us, which is whereby pub companies decided to sell their pubs to develop them into flats and the like.
"So, again, you're losing the heart of the community.
"I am afraid for the pubs and the independent pubs in particular in Wales, and I wish that both Welsh government and UK government would do more to protect us."
Business Minister Gareth Thomas says:
"We're determined to improve the UK's business environment, including for pubs.
"We’re working with industry to slash red tape and have announced a permanent cut to business rates, helping pubs to grow and thrive as part of our Plan for Change.”
The Welsh Government says:
“We recognise the pressures faced pubs in Wales and we are providing a sixth successive year of support for retail, leisure and hospitality businesses with their rates bills, at a cost of £78m, which builds on £1bn of support provided in rates relief to these sectors since 2020-21. This comes on top of our permanent reliefs for businesses worth £250m annually.
“Our Business Wales service is available to help pubs to build more resilient businesses and develop their business practices. The service aims to improve productivity and stimulate business growth in an inclusive and sustainable way, providing access to a wide range of information, guidance and support.”