Writing in an open letter following Chancellor Rachel Reeves budget announcement, he said that having taken the time to absorb the detail of last Wednesday’s announcement – particularly the changes to the business rates system – “the conclusion is stark”.
‘Cannot bear it’
“This budget heaps yet more cost and pain on a sector that simply cannot bear it.”
Georgel – who is also chairman of the British Beer & Pub Association – said that St Austell is fortunate enough to have supportive shareholders, who back the investments it is making across its business, but that its future growth plans will still be impacted because of the choices made by the government in this and last year’s budgets.
He said St Austell had initially approached this budget with a degree of optimism, hoping the government would finally grasp the seriousness of the pressures facing pubs and honour its own manifesto to commitment to support the pub sector.
“But weeks of damaging speculation drained that optimism, replacing it with fear about what the Chancellor would announce when she finally stood at the despatch box.”
For months, industry bodies have been speaking with the Treasury and providing clear factual evidence to reinforce the reality of the pub sector’s precarious state, Georgel wrote.
‘Hides the truth’
“We have repeatedly asked for breathing space from what is already the most heavily taxed sector within our economy. Instead, the government has chosen to impose even more punitive taxes on businesses that support jobs, communities and local economies across the UK.
“Worse still, the Chancellor has tried to claim business rates are going down.”
Georgel said the “small cut to the multiplier hides the truth”, which is that rateable values are rising sharply and justified reliefs are being scrapped.
Read the full story on The Morning Advertiser’s sister site, MCA, here.
