Local legends: How pubs are powering stronger communities

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Vital places: BII chief executive Steve Alton on how pubs build stronger communities

As CEO of the British Institute of Innkeeping (BII), I have the privilege of working with thousands of passionate, hardworking licensees across the UK.

They are not just running businesses, they are vital to the communities they serve.

Pubs are so much more than a pint at the bar. They are places of connection, careers and community. They bring people together in ways few other spaces can and particularly in recent times, they are the lifeblood of towns and high streets across the country.

But they are also powerful drivers of the economy—supporting nearly 1,000,000 jobs, many of them skilled, long-term careers with genuine progression for people of all ages, qualification levels and backgrounds.

Our members provide not just employment, but opportunity—offering young people apprenticeships, training and leadership roles in an industry that values people and passion.

At the heart of every pub is also a network of local suppliers, from farmers and brewers to cleaners and builders, driving investment back into local economies, supporting working people from every walk of life.

And the social impact? It’s extraordinary. Pubs raise more than £100m for charities each year, host local support groups, community events, and provide a vital link for those experiencing loneliness or isolation.

Escalating costs

They are often the last remaining public space where everyone—from every generation and background—feels welcome.

But despite all they give, our pubs are under immense strain. Walking into a busy beer garden over the Bank Holiday weekend and around the brilliant VE Day celebrations, consumers could be forgiven for thinking their local pub is hugely successful.

Some may even grumble as they see the price rises that have inevitably gone through at the bar. But the true picture is one that pub operators hide behind welcoming smiles and brilliant service.

In our most recent survey of BII members, just one in four licensees expect their pub to be profitable this year.

That’s a direct result of escalating costs—from increases in employment costs and energy bills to soaring business rates—all on top of the continuing pressures of inflation and cost-of-living challenges affecting customers.

It’s not just about profit, it’s about resilience. Profitability is what allows our licensees to invest in their teams, maintain their pubs, innovate their offer, and weather future challenges.

“Pubs are overburdened by costs that threaten their long-term viability.”

BII chief executive Steve Alton

Without that foundation, their ability to continue serving their communities—economically and socially—is at risk.

What concerns me just as deeply is the human cost. Our survey also revealed that only one in four licensees consider their own mental health and resilience to be good. That is not a sustainable position for a sector that gives so much.

These are people who work incredibly long hours, often seven days a week, because they care about their communities and want to create brilliant spaces for others, often for less than minimum wage when you consider the time they commit to their pubs.

They continue to do this, supporting their locals and providing the social connections that are so vital for the mental health of every human being, despite the enormous pressure they themselves are under.

We recently announced our partnership with the LTC, tackling all the challenges our pubs and their teams are facing from every angle, offering business support alongside the wellbeing, financial and practical support the LTC provides so brilliantly.

We know just how vital it is to look after each other – customers, teams and licensees alike.

Despite all of these significant challenges, the pub sector has the potential to be a major driver of economic growth, regeneration and social cohesion—but to unlock that, we need government to act.

The changes made in the Autumn Budget to National Insurance contributions in particular, have resulted in our members paying their largest ever monthly wage bills, but the vast majority of that additional cash is going straight to the Treasury, not putting more money into their team’s pockets.

In many cases, shifts and opening hours have had to be reduced in order to cut costs for the pubs – not because there isn’t the customer demand, but because they have to find a way to pay their teams and the huge tax rises that have come their way since the beginning of April.

As the CEO of the BII, I’m calling for fairer, more targeted taxation. Pubs are overburdened by costs that threaten their long-term viability.

Real impact

Lower taxes through fairer VAT, a smarter approach to business rates and lowering the taxes on employment would allow our members to not only survive, but to thrive—to reinvest, grow, and continue to offer skilled jobs and vibrant hubs for their communities.

Pubs deliver extraordinary value, and it’s time they received a fair reward for their hard work. With the right support, they will continue to power local economies, strengthen communities, and provide inclusive spaces that bring people together.

Our licensees are local legends—entrepreneurs, employers, mentors and neighbours. We see that every year with our Licensee of the Year competition, with pub leaders doing incredible things in every single community and type of pub.

With countless examples of other countries recognising hospitality as not only a rewarding professional career, but also as a powerhouse for economic growth and social mobility, we need to be doing the same.

I am taking every opportunity to share the realities of our members directly with those at the heart of Government, through the Hospitality Sector Council, and in meetings with Ministers, but they tell us that the real impact lies within every single community, calling on their local MPs to recognise the huge value of these essential hubs.

Let’s give them the support they need to keep doing what they do best - it’s time to back Our Pubs.

You can get your teams, customers and suppliers to get involved with Our Pub campaign here.