The British Institute of Innkeeping (BII) has revealed trading insight from its members highlighting the severe impact of exceptional costs on their businesses over the last few years.
Pubs have seen significant cost increases, driven by high inflation, across all areas of their business, in additional to inflated and unfair energy prices.
While two out of three respondents are reporting trading back to normal levels, or seeing a rise in sales over the past year, their fortunes are mixed when it comes to profitability. Only one in two of these say they are making a profit.
The BII has written to the chancellor ahead of the Autumn Statement, taking its members’ voices to the heart of government. It is calling for further investment in these essential businesses at the heart of their communities.
“Many long-standing, viable, and diversified pub businesses are seeing strong sales simply not translate to profit,” said Steve Alton, chief executive of the BII. “This is holding back their ability to further grow their businesses through investment in their offer and their teams.
“The exceptional short-term pressures will abate, and government must now invest in these essential community businesses to allow them to weather current trading challenges.
“Announcing an extension to the existing business rates support for at least another year will be a vital lifeline for many. Also, levelling the playing field for pub businesses through reducing unfair and disproportionate taxes, focusing on a specific VAT reduction for pubs and hospitality, will be key to unlock the full potential of our sector.”
The BII’s #MyPub campaign has also called on licensees across the country to write to their MPs, asking for their backing for the continuation of the 75% business rates relief seen in England and Wales members, as well as an extension of the same relief to Scottish businesses.
Any operators wishing to take part can visit the #MyPub campaign page on the BII website. The letter to the Chancellor can be viewed here.
