‘We Don’t Need a Sticking Plaster,’ Say Pub Owners
Pub landlords are calling on the government to refrain from implementing “sticking plaster” solutions regarding business rates. As concerns mount about new financial burdens, many owners believe a more comprehensive approach is necessary to safeguard their establishments.
Growing Concerns Over Business Rates
– Wayne Edge, a pub owner in the Forest of Dean, faces an additional £1,200 per month in business tax.
– The government recently proposed scaling back on the business rate increases announced in November’s budget. However, landlords at a gathering in Gloucestershire emphasized that they require more substantial reforms.
Phil Kiernan, owner of the Farmer’s Boy Inn in Longhope, stated, “You can’t put a sticking plaster on this. We don’t want a discount; we need it gone and a fair system.” The urgency is palpable as pub closures escalate, with three pubs shutting down daily across the UK, according to Wayne Childs, landlord of the King’s Arms in Newent.
The Impact on Local Businesses
Over 40 hospitality firms attended the meeting to protest against the proposed tax hikes. Many businesses face increases amounting to tens of thousands of pounds, prompting serious considerations of cutbacks and potential exits from the industry.
– Nicki Bird, chair of the Forest of Dean Economic Partnership, shared, “I’ve spoken to many people today who aren’t even paying themselves minimum wage.” She expressed concern for community pubs and cafes, stating, “It would be heartbreaking to see them vanish simply because they can’t afford to keep going.”
Wayne Edge added that the imminent rate increases are forcing him to contemplate reducing staff hours or facing redundancies, which he is eager to avoid.
Why Are Pub Taxes Rising?
In the November budget, Chancellor Rachel Reeves introduced cuts to business rate discounts that helped during the pandemic and made adjustments to rateable values for pub premises.
– Business rates involve a calculation based on the rateable value and a percentage ‘multiplier.’ Initially, pubs were set to see the multiplier they were charged reduced from around 50% to just under 40%.
– However, rateable values were also raised—often doubling—which outweighed the benefits of the tax rate reduction for many pubs.
In light of widespread backlash, the government has indicated a potential willingness to reconsider the size of these increases, although pub owners remain skeptical.
The Call for a Comprehensive Solution
Phil Kiernan reiterated the need for an effective response, saying ministers must shy away from “sticking plaster solutions” when addressing the pub tax crisis.
Dave Harvey, a business correspondent, noted, “I have never met so many angry landlords. Phil Kiernan gathered 40 local hospitality businesses to voice their grievances at 07:30 in the morning, a reflection of the urgency felt across the UK.”
Pub owners are not just seeking a holdover discount from Covid-19; they’re advocating for a fundamental reevaluation of how business rates are calculated. As many pubs see their rateable values surge, landlords are rallying for substantial changes to ensure their businesses can survive.
Conclusion
The frustrations of pub owners underline a critical juncture for the hospitality sector. Rather than relying on temporary fixes, they are advocating for meaningful reforms that address the root of the challenges they face. The call is clear: pub landlords want solutions that truly safeguard their future, not just “sticking plaster” fixes.