The British Institute of Innkeeping (BII) is urging the Government to provide meaningful support for pubs, rather than just empty promises, in response to the findings of their latest survey. The BII represents 13,000 members, the majority of whom operate independent pub businesses as free traders or tenants and lessees. These members have consistently called for fair taxation to ensure the survival, growth, and economic contribution of their businesses, as well as the support of flexible, local employment opportunities.
The survey conducted by the BII demonstrates the significant impact of recent tax increases on pubs, which are small businesses at the heart of communities across the UK. Even before the implementation of rises in National Minimum Wage, employer National Insurance Contributions, changes in the NICs threshold, and reductions in business rate relief, nearly 75% of survey respondents were either breaking even or operating at a loss. Rising costs related to staffing, energy, inflation, and other factors have eroded profitability for many BII members.
The upcoming tax changes set to take effect in April are expected to further exacerbate the challenges faced by pub businesses. Over 80% of respondents anticipate a negative impact on their operations, leading them to consider difficult choices such as reducing staff hours, cutting staff numbers, and decreasing spending with suppliers. The diverse nature of pub businesses means that there is no one-size-fits-all solution to address the tax burden, but a significant reduction in VAT is identified as a top priority by over 70% of respondents.
Steve Alton, CEO of the BII, emphasizes the essential role that pubs play in connecting communities and providing valuable employment opportunities. He stresses the need for tangible action from the Government to address the mounting pressures facing pub operators, particularly in light of the recent tax increases. Alton points out the disproportionate impact of rising minimum wage costs, increased NICs payments, and higher business rates on pub profitability and operator well-being.
The BII has launched the ‘Our Pub’ campaign, encouraging pub team members, customers, and suppliers to engage with their MPs and advocate for fair treatment and support for pubs. The campaign aims to highlight the importance of pubs as community hubs and economic contributors, underscoring the need for policy changes to ensure their sustainability and growth.
In conclusion, the BII’s call for meaningful support for pubs reflects the urgent need to address the challenges facing the sector. By advocating for fair taxation, reducing VAT, and providing targeted assistance to pub businesses, the Government can help safeguard the future of these vital establishments and their role in supporting local economies and communities. The well-being of pub operators and the broader implications for mental health, welfare services, and economic stability underscore the importance of taking proactive steps to support the pub industry and ensure its continued success.
