9,000 venues could close down within the next 12 months
One in five pub and bar owners are worried they will have to shut in a year’s time, new research has found.
It’s no secret that ever since the Covid pandemic hit the nation, pubs have been struggling massively.
Last month, Wetherspoons announced a number of its locations would be closing, whilst figures show that more than 50 pubs shut every month in England and Wales in the first half of 2024.
Now, research from the UK Spirit Alliance (UKSA) has found around 9,000 venues could be forced to close within the next 12 months.
A survey of over 200 pub and bar owners carried out by Survation on behalf of UKSA found one in five believe they are unlikely to be open in 12 months.
The previous Conservative government had implemented the ‘Brexit pubs guarantee’, which put a freeze on the tax of drink poured from a tap.
However, the policy has been labelled a “gimmick” by pub landlords and venue owners, with just 4 per cent saying it provided “adequate” support, the Mirror reports.
The industry is instead calling on chancellor Rachel Reeves to scrap the policy and cut back duty on spirits to provide much-needed support to pubs and bars.
Last August, the Tories hiked duty on spirits by 10.1 per cent, with the UKSA claiming this cost in the Treasury £300million in lost tax receipts.
Four in five of those asked in the UKSA survey said they would have to raise prices if there is a further increase in duty on spirits.
Neema Rai, Founder of Westminster-based Thamesis Dock pub said: “The Brexit Pubs Guarantee did little to ease the burden, whilst drinks are increasingly unaffordable for consumers. A reversal of the 10.1% duty rise is crucial to ensure pubs and hospitality venues across the UK can continue to serve their local communities, making it a win-win for the Chancellor and businesses alike.”
In a letter to the chancellor, members of the UKSA said: “This duty system has slammed the brakes on a booming sector leaving many distillers fearful for the future and rethinking their investment plans.
“Pubs are more than pints, and the last Chancellor’s duty increase heaped more pressure on struggling pubs and wider hospitality.”
Business minister Gareth Thomas said he would be speaking to Reeves about support for the pub industry before she delivers the Budget on Wednesday.
Describing hospitality as the “backbone of our high streets and lifeblood of our communities”, Thomas said the industry had been damaged by an “antiquated” system of business rates which the Tories had failed to reform.
Meanwhile, Tory MP Peter Bedford has urged Reeves to support the industry by keeping business rate relief in place.
