‘We’re in a downward spiral that is very difficult to get out of’: Pub bosses say they are ‘on the brink’ after Autumn Statement – and warn ‘there’s no light at the end of the tunnel’
- Landlords told MailOnline they’re being hit by ‘double whammy’ of high costs and reduced customer demand
- Mr Hunt said UK ‘had to pay its way’, but landlords insisted ‘bleak’ state of pubs meant they needed support
- UK Hospitality welcomed £15billion worth of business rates support for pubs, restaurants and local shops
- Follow MailOnline’s main coverage of the 2022 Autumn Statement HERE
Pub landlords today reacted angrily to Jeremy Hunt’s Autumn Statement, which they said leaves the industry locked in a ‘downward spiral’ with ‘no light at the end of the tunnel’.
Addressing the Commons, the Chancellor unveiled tens of billions of pounds worth of spending cuts and tax rises aimed at restoring Britain’s fiscal credibility and repairing a £55billion ‘black hole’ in the nation’s finances.
While he insisted the UK ‘had to pay its way’, landlords insisted the ‘bleak’ state of pubs – which sustain around 800,000 jobs in the UK and are at the heart of local communities – meant they deserved specific support.
Mr Hunt unveiled one positive for landlords in the form of £15billion worth of business rates support for pubs, restaurants and High Street shops over the next five years, which was welcomed by industry body UKHospitality.
Dawn Hopkins, landlady of the Rose Inn in Norwich, praised the business rates measure – but said she was waiting to hear more details
And she said the outlook remained negative, telling MailOnline: ‘I feel like we’re in a downward spiral that is very difficult to get out of – I’ve had to put my prices up twice in the last couple of months just to cope with price rises we’ve had so far.
‘I’ve got a huge range of customers and in general they’re very downhearted. They’re having to cut their spending, including by going to the pub less – there’s no light at the end of the tunnel for us at the moment.
‘So it’s a double whammy – we’re having to reduce our hours and staff due to rising costs while our customers are having their own issues as well.’
Peter Tiley, landlord of The Salutation Inn, Gloucestershire, said issues like high energy costs meant the outlook for pubs was ‘bleak’
Gary Murphy, director of the Campaign for Pubs and former landlord of the Ye Olde Mitre Inn, High Barnet, London, said: ‘Given what we’ve seen today, the idea that the Conservative party is the party of small business is quite ludicrous’
Dawn Hopkins, landlady of the Rose Inn in Norwich, told MailOnline: ‘I feel like we’re in a downward spiral that is very difficult to get out of – I’ve had to put my prices up twice in the last couple of months just to cope with price rises we’ve had so far’
Outlining the other policies she had wanted to be included in today’s Budget, Ms Hopkins said: ‘I’d like to have seen a cut in VAT for hospitality, not just for food but for alcohol as well.
‘That would have been hugely beneficial by helping us to cope with some of the price rises.
‘During the pandemic there seemed to be a real will to keep businesses and pubs going. It was desperate then but it’s also desperate now.
‘It’s actually scarier at the moment because we’re being left by ourselves and not getting any help.’
Peter Tiley, owner of The Salutation Inn in Berkeley, Gloucester, said issues like high energy costs meant the outlook for pubs was ‘bleak’.
‘A lot us are paying back thousands a month in Bounceback loans, and while we’ve had a good summer because of the weather we were relying on the government to soften the blow of the energy crisis to some extent,’ he told MailOnline.
‘To hear that’s not going to be happening now is very concerning to say the least. My own energy bills have doubled.
‘And unfortunately we have to pass cost rises through to customers in price increases but we’re also stuck with them because they don’t have a lot of money.
‘I get that we’re in a financial hole as a country and we need to tighten the purse strings, so you can’t just go dishing out cash.
‘But at the same time the energy crisis is an exceptional situation that requires exceptional measures – we’re back into a Covid-level situation really.
‘Support for energy bills for consumers and businesses is the only real giveaway I’d be asking for at this point – there are pubs shutting their doors right now because it’s just not viable any more.’
Gary Murphy is director of the Campaign for Pubs and former landlord of the Ye Olde Mitre in High Barnet.
He told MailOnline: ‘What we really needed was something substantial like a VAT cut, which would have helped them ride through some of these huge rises.
‘Heineken will be putting up the prices in January by 16 per cent. That’s 50p or £1 a pint. That’s a huge sum for businesses and consumers already under pressure.
‘The industry is in crisis – the small independent pubs, freeholders and small breweries that I represent in particular.
‘Given what we’ve seen today, the idea that the Conservative party is the party of small business is quite ludicrous, really.’
Commenting on the announcement of business rates relief, he said: ‘It definitely doesn’t go far enough. Obviously every little. It’s not going to save a single business.’
Sacha Lord, Night Time Economy Adviser for Greater Manchester, said: ‘Operators are being squeezed beyond their ability, and I fear we will now see huge cuts in staffing, reductions in opening hours and venues closing at a faster rate faster than seen during the pandemic’
UKHospitality Chief Executive Kate Nicholls said: ‘The Chancellor painted a grim picture of what we’re facing as a nation and Britain’s hospitality businesses are already in the midst of severe economic turmoil.
‘Survival this winter is the priority for venues across the country and there is the very real possibility that a significant proportion of our sector will not survive the winter. It was crucial that the Government addressed this today.
‘I’m pleased that the Chancellor has listened to the vast majority of UKHospitality’s proposals on business rates, covering a freeze in the multiplier, extended reliefs and no downward transition. This means those seeing their valuations decrease will see the benefit in their bills immediately, at the same time as increases are capped.
UKHospitality Chief Executive Kate Nicholls, said: ‘The Chancellor painted a grim picture of what we’re facing as a nation and Britain’s hospitality businesses are already in the midst of severe economic turmoil’
‘However, it remains the case that the current system is outdated and not fit-for-purpose. The Government made a manifesto commitment of root and branch review and it’s essential that this delivered as soon as possible.’
Sacha Lord, Night Time Economy Adviser for Greater Manchester, said: ‘Operators are being squeezed beyond their ability, and I fear we will now see huge cuts in staffing, reductions in opening hours and venues closing at a faster rate faster than seen during the pandemic. It is a very sad state of affairs.
‘We will now see a downturn in consumer spending over the coming weeks and months, at a time when operators need the most support as they recover from the hangover of pandemic related debt.
‘Disposable income underpins the UK economy and I’m hugely concerned that the policies outlined today, will create a severe contraction in the sector. Spending on luxuries such as dining out, is naturally the first to go in times of cutbacks.’
Emma McClarkin Chief Executive of the British Beer and Pub Association said: ‘It is right the Chancellor has acknowledged of the need for changes to our business rates system and we welcome the extended and increased relief to 75% for pubs, so they do not continue to be penalised through unfair taxation.
‘Urgent root and branch reform is still needed make business rates fit for the 21st century; the decision not to introduce an Online Sales Tax it seems the Government doesn’t recognise the completely archaic nature of the current system.
‘The failure to provide any further relief for our industry today will hit pubs, breweries and their customers extremely hard this winter, and will have a devastating, lasting impact on communities across the country.’
Extending the freeze on tax thresholds to 2028 will drag all workers deeper in the system, meaning they pay more
Inflation in the UK hit 11.1% in October – the highest level in more than 40 years
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