The organisation said despite a strong summer of trading for many, with 60% seeing turnovers equal to or greater than the same period in 2024, the tax rises from last year’s Budget have hit hard since April.
The BII highlighted a previous survey alongside fellow trade associations, UKHospitality, BBPA and Hospitality Ulster, that showed hospitality businesses shrinking their workforces and capacity to 85%, just to meet the increased tax demands.
This latest survey also revealed that with a significant reduction in the tax burden, more than 70% said it would trigger investment in their pub business, with nearly 50% of pubs saying they would grow their teams.
Sector challenges
The BII highlighted the challenges facing pubs with Covid-related debts still being repaid, the energy crisis creating bills up to three times as much as they were in 2021, and high food and drink inflation of over 20% in recent years.
BII CEO Steve Alton said: “Our members and the wider pub sector are being pushed to breaking point by unfair and unsustainable tax burdens. We have shown time and time again that we have the potential to be a powerhouse of economic growth, given the right support, but Government have forced us into a corner with more than £1 in every £3 we take over the bar going straight to Treasury, alongside a raft of overheads that are completely out of our control.”
“When the energy crisis hit, our pubs invested in energy-saving equipment and sustainable practices. When Covid hit, we were the community hubs, fundraising and caring for the vulnerable. When food and drink inflation became relentlessly high, we re-engineered our menus and protected our customers from the full effects of the prices we should have passed on.”
Dire consequences
He highlighted that pubs have been left “with little choice” but to cut jobs, opening hours, and many licensees are working 70 hours a week.
“If the Chancellor doesn’t recognise the devastating impact last autumn’s Budget has already had on our sector, not even six months since it came into force, and remove some of the pressure on our pubs, the consequences will be dire,” he said.
He reiterated calls from the BII members to cut in VAT on all pub sales, in line with other European countries, a full reform of the business rates system that leads to permanently lower rates bills than they currently pay, and a reversal of the NICs increases.
