The Campaign for Pubs has written to the chancellor and called upon the government to understand the serious threat to pubs, ahead of the Budget.

cask ale pub

Pubs face a perfect storm of dramatically rising costs, especially energy costs, and at the same time a customer base having to reduce their own spending. Pub closures remain at a high rate, and small breweries have been closing at a rate never seen before.

The campaign is urging the chancellor to:

  • Offer small businesses continued support with energy costs;
  • Have a VAT rate of 5% on all hospitality/on-trade sales for 12 months, to benefit all pubs, not just those that sell food or offer overnight accommodation, but also smalle, wet-led, community-orientated pubs.
  • Reduce the flat rate of VAT;
  • Extend zero business rates for the next fiscal year, with a revision for 2023/24; and
  • Extend business rates relief to small brewers and producers, who have not had any such support.

“The current situation for our pubs and brewers is truly dire, as evidenced by the spiralling rate of small business closures in the sector,” said Campaign for Pubs chair, Paul Crossman.

“Without significant and immediate government support in the face of this ongoing crisis, we will see the imminent loss of a huge number of our most precious and characterful local venues and independent regional producers.

“The choices made by the chancellor in this Budget look set to be the difference between thousands of jobs and businesses being preserved for the future, or being sacrificed along with the vital cultural and economic contribution they make to communities across the UK. This is a decisive moment for the government to show what they really think of our revered and world famous pub and beer industry.”

Vice-chair, Dawn Hopkins, added: “The current level of government support is simply inadequate, and the survival of many pub businesses and small brewers now depends upon decisive and properly targeted government action.

“Without further support to get through the cost of living crisis, including tackling the spiralling energy costs, many publicans and small breweries will struggle to get through the next six months.

“The chancellor says the government ‘cannot afford’ any more support for businesses, yet, without this, more publicans and brewers will have no choice but to close the doors, and that means job losses and a blow to the economy locally and nationally. It’s time for the chancellor to show whether or not he and the Government care about pubs and small brewers or not, and we urge him to listen and act.”