‘Beloved pubs that unite and delight us are in urgent need of rescue’
If you enjoyed a pint in your local boozer during the recent festivities, then cherish the memory, as this year will see our pubs fighting for survival.
Chancellor Rachel Reeves’ Budget was not just a body blow to the pub trade, it has put the entire sector into intensive care. After years of warnings, this time the clock really is counting down on our hallowed local hostelries.
The number of pub closures for 2024 paints a graphic and alarming picture of just how tough it has been for landlords and landladies in the last year.
Government statistics analysed by commercial real estate specialists at Altus Group show that, for the first time ever, the number of pubs in England and Wales last year dipped below 39,000 – to 38,989.
Some 412 pubs were either repurposed or demolished over the year to December. This equates to an average of 34 pubs closing every month.
The West Midlands lost 53 pubs last year. London lost 55. These are pubs that, in many cases, have been part of their communities and a feature of local life for decades, now gone and lost forever.
The drop in pub numbers last year was the sharpest fall since 2021, when the trade was battered by pandemic restrictions and rocketing energy prices. Sadly, the trend is consistent across the country.
For centuries, pubs have played a vital role in society. For some people, they help combat loneliness as they are a place to go for a chat and a bit of company. For others, the pub is a place where a couple of drinks at the end of the day or the working week creates a break from the grind and challenges of life.
My local pub, The Eastgate in Chichester, West Sussex has a thriving darts scene, with those in their late teens and early twenties rubbing shoulders with those who are playing darts well into their seventh decade.
Aside from the social benefits, pubs and brewers generate billions of pounds for our economy and support more than a million jobs. All of this is at risk.
Everyone has their own local and I have been lucky enough to spend plenty of time in some glorious pubs and bars over the decades with some great people: The Travellers Rest in Higher Bebington; Colpitts Hotel Pub in Durham; The Bicton Inn in Exmouth; The Blue Boar in Maldon; The Richard Cobden in Worthing; The Speaker in Westminster; Little Monster Tap in Chichester; and The Halfway Bridge in Lodsworth.
These are some of my favourite watering holes and there are countless others, but I seriously worry about all their futures.
From April, new measures that were announced in the Chancellor’s Autumn Budget will come into force, which will once again force pub operators to operate under the cosh.
The increase in the amount employers will have to pay in National Insurance, the hike in the minimum wage and the business rates discount being reduced from 75% to 40% will be crippling for many pubs. This is simply a three-pronged attack on the pub and hospitality sector and once again demonstrates that Labour has zero understanding of commerce.
Add to this the increased bureaucracy created by Angela Rayner’s Employment Rights Bill and you have a combination of costs and restrictions that make it even harder to run a successful business.
The larger pub chains might be able to overcome these challenges, but your smaller pub owners will conclude it is no longer worth remaining open or will end up sacking loyal staff to cover increasing costs.
None of this will help this Government’s attempts to boost economic growth nor encourage employment.
Trade body UK Hospitality is calling for an immediate rethink of the increase in employer’s National Insurance contributions. The British Beer and Pub Association are urging reform of the business rates system. We need further drastic action to protect our pubs.
The business rates discount should remain at 75%. This would be one U-turn by Rachel Reeves that would be welcomed.
VAT on eating and drinking out should be slashed to the European level of 12.5%. And the Government should show real intent and understanding of this crisis by appointing a Minister for Pubs.
Politicians from every political party always seem keen to support the pub when it comes to having their picture taken with a pint for publicity purposes.
It is about time they did something meaningful for the great British boozer as we know it, before it’s too late.
Or this year really could see last orders for the trade.
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