Pub rates misery blights summer, according to bosses

Pubs are struggling to turn a profit despite the sunny weather as Labour drags its heels on tax reform, bosses have said.

Drinkers are flocking to beer gardens for a pint but industry leaders say business rates mean takings are being drained away – despite pledges by Labour to change the system.

Chancellor Rachel Reeves has piled on further pain with a rise in employer national insurance contributions that took effect in April.

An industry forecast last week showed that one pub could close every single day this year across Britain.

Chris Jowsey, the chief executive of Admiral Taverns, said: 'On the face of it, pubs are doing really well because people are spending lots of money but none of it is translating to the bottom line.

'Rather than layering on cost after cost, if they're not careful they're going to make hospitality extremely uninvestable. It's really important that [Labour] do the rates reforms.'

Simon Dodd, the boss of chain Young's, said: 'It has gone quite quiet on rates reform, which would help the whole sector.

'Labour came to power with this five-point plan for growth and the thing we would like sorted out is this. All we are asking for is a fair playing field.'

He said his 230 pubs in London and the South East are 'really, really busy' thanks to the scorching weather.

Dodd added: 'We have broken records, the sun has really helped. The great British pub is alive and kicking.

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'That said, if you are an independent operator at the moment, it is very, very hard.'

Simon Emeny, chief executive of Fuller's, said: 'An overhaul of our archaic business rates is long overdue, and the truth is that the whole system is not fit for purpose. It was created and introduced at a time when the digital economy was not even a pipe dream and for 14 years the Conservatives put it in the 'too difficult' box.

'We are still awaiting the full details regarding the changes made by the Labour Government at the last Budget – but if the Chancellor thinks this is 'job done', she is a long way off the mark.'

Business rates are a local levy based on the value of a commercial property, meaning shops and pubs pay a premium compared to online giants such as Amazon.

The hospitality industry was hit by a £500m increase in business rates in April alongside a barrage of other costs imposed by Labour. That included the NI hike and a sharp increase in the minimum wage.

Before the Budget, small businesses had called for a Covid-era discount of 75 per cent to be extended to give them some breathing space.

But Labour reduced this to a 40 per cent discount, capped at £110,000 per pub.