Leisure sector being 'crushed' by tax and regulation

He predicted the economic recovery would “continue to be very slow” on a nation basis and “subject to external shocks which could derail it at any moment”.

Devlin, who also chairs sports media group Satellite Information Services and online gaming firm Gamesys, told the Business in Sport & Leisure Conference last week: "Sport and leisure are being crushed beneath an untenable burden of tax and regulation. And we’re on our own because Her Majesty’s Government is institutionally incapable of helping us.

“If we do succeed it will be entirely because of our own efforts and despite Government.”

Over taxed​

Devlin, who said he was speaking in a personal capacity, pointed out that since 2008 beer duty has increased 42% and consumption has fallen 17%, while 6,000 pubs have closed and 60,000 jobs have been lost.

“We are a chronically over taxed and over regulated sector despite the fact that we are an engine for job creation.

“Marston’s invests £70m a year opening new pub restaurants, each one of which creates around 50 new jobs in places where jobs, particularly for young people, are hard to come by, Merthyr Tydfil, Gosport and Dunbar to name but three.”

Encourage growth​

He challenged the Government to “encourage growth by removing obstacles to new development, reduce business rates and cumbersome planning requirements”.

Devlin said an extension to small business rate relief and an increase in the threshold for full relief “would help so many small leisure businesses”. He called for the “inequality” to be removed from the tax system, pointing out that the UK pays 40% of European beer duty but drinks just 13% of the beer.

Devlin added: “Can anyone explain why VAT is charged on food in pubs, but not in supermarkets?”

Risk and reward​

He highlighted the fact that Marston’s pays £300m in tax per year and just £35m to its shareholders.

“Does anyone seriously think that represents a fair balance of risk and reward?”

Devlin queried whether “green shoots” really exist in the economy, suggesting that the “we now live in two very different countries: London and the M25 and the rest of the country”.

“And while London and the south east continue to prosper, my antennae are telling me very simplistically that the further north you go the more difficult it gets.

“As far as sport and leisure are concerned this is an extremely fragile recovery. Our consumers are very much part of the real world. They are hard working people spending their limited discretionary spend after being taxed to the hilt on low ticket repeat leisure transactions and whether we measure that in bets placed over the counter or pints sunk in the pub it remains challenging out there.”