The chancellor has made her spring statement, full of hope and optimism for the next four years, but with nothing — nothing — to cheer Britain’s beleaguered hospitality and brewing sectors.
The financial year looms. Employers’ National Insurance contributions will rise. National minimum and living wages will rise. Business rates relief will end. And pubs will close.
“The chancellor, Rachel Reeves, has completely overlooked the ‘working people’ who keep our pubs and small breweries running across the country,” said Dawn Hopkins, vice-chair of the Campaign for Pubs.
“Her budget pushed our industry further into crisis, and today she offered nothing to ease that despair. She talks about getting people off benefits and into work, but where are these jobs coming from? Pubs are being forced to cut staff just to survive, and nothing she has said or done in the spring statement will slow the alarming rate of closures.
“It’s deeply disheartening that this government shows such little interest in protecting our incredible, yet currently struggling, pub industry — and even less concern for the hardworking people within it.”
The campaign’s South West England representative, Alastair Kerr, added: “What makes it worse is that only a few weeks ago the prime minister and deputy prime minister claimed they supported pubs. Today’s spring statement makes a mockery of that.
“Rachel Reeves has now confirmed what UK publicans already suspected — that this government doesn’t actually give a damn about pubs and is happy to see them close. She will not be welcome in any pub until and unless she and the government wake up and change course.”
“Today’s statement was incredibly disappointing, delivering nothing to allay the fears of operators in our essential sector,” said Steve Alton, chief executive of the British Institute of Innkeeping (BII).
“Pubs are the very fabric of our society, and despite encouraging trading for many of our members at the beginning of the year, their profitability has been threatened yet again.
“Incredibly successful operators, who serve their communities, provide flexible employment and incredible career opportunities, can be part of the growth that was at the heart of this government’s manifesto.
“But the current approach of taxing small businesses to the hilt means that growth will be impossible, as operators desperately try to manage ever-rising costs, being forced to cut services, opening hours, and staffing levels to ensure they survive.
“Without support via a fair and reduced taxation on these bricks and mortar businesses, we stand to lose so much. They support social mobility, allowing people of all ages and from all backgrounds to access flexible employment, with incredible opportunities for career growth, regardless of qualifications.
“They are so often the key to improving mental health and social connectivity, offering local community groups a home, sponsoring grass roots sports teams, raising vital funds for charity, and caring for older and more vulnerable local people.”
He added: “We have been crystal clear and consistent in our messaging to government. If you remove the barriers to growth, pubs will rapidly deliver revenue, local employment and support for supply chains and communities.
“Without recognition of the pressure the autumn Budget put onto our sector, uniquely placed at the heart of every town, city, and high street in the UK, they have failed communities everywhere.”
UKHospitality said that the lack of a clear growth plan for hospitality puts high street jobs at risk. It called for the government to urgently bring forward a plan that allows hospitality to unlock growth and jobs, for everyone, everywhere.
“Growth won’t just happen without a plan,” said chief executive Kate Nicholls. “Today’s statement was yet another missed opportunity to avoid an April cliff-edge, which will level a devastating £3.4 billion annual increase to the sector’s tax bill.
“The government’s own analysis shows the failure to address the employer NICs threshold will force businesses to freeze recruitment, reduce hours available for staff, and reduce employment levels in the very sectors the government needs to achieve its goal to get people off welfare.
“If the government is serious about getting Britain working, it needs hospitality. When we were backed after the financial crash and the pandemic, we proved how we can help drive economic recovery.”
She added: “Our new research this week proves that hospitality and the foundation economy are essential to the government’s plan to create jobs where they’re needed, not just in clusters in the South East.
“There is still time for the chancellor to act and avert this disaster. Now is the time to back hospitality, delay the changes to employer NICs, and work with us to bring forward a plan for the high street that can deliver socially productive growth and opportunities to get people back into work.”
Emma McClarkin, chief executive of the British Beer and Pub Association, said the government had missed an opportunity in the spring statement.
“For a government whose mission is growth, there is an alarming lack of a plan to boost the economy, given they’ve buried brewers and pubs under mountains of regulations, rates, and taxes,” she said.
“We now predict that, following the spring statement and taking into account the new costs coming into effect from April, the sector will now face an additional £70 million per month, the equivalent of 5,700 jobs per month. We can expect to see pubs close at a faster rate, which will risk growth and jobs and hurt the communities who rely on them.
“Time is of the essence, so if government truly wants to unlock growth and support jobs they must reform business rates, deregulate, review the new chaotic and punishing [extended producer responsibility for packaging] fees, and phase in employment costs.”
