Last week, the Government announced it had planned to introduce changes to the business rates measures outlined in the Autumn Budget, following protests from pubs across the country, many of which banned Labour MPs from their venues.
More recently, business secretary Peter Kyle admitted the Government “didn’t have the full picture” ahead of the Budget.
Marc Bridgen, owner of the Dog at Wingham in Canterbury, Kent, told The Morning Advertiser (The MA) this was “another example of the Government not carrying out due diligence”.
The Top 50 Gastropubs operator said the pub’s rateable value had been projected to rise by around 50%, resulting in a £15k increase, but added he is now unsure what to expect.
Negative impact
While he welcomed any reduction in rates, he urged constant policy changes have left operators feeling stressed and uncertain about the future of their businesses.
“They don’t understand what is really going on within the business world. [I’m] pleased they are making changes but this is a future challenge - what about the current challenges.
“There seems to be constant legislative and taxation changes that are negatively impacting our industry; service charge, minimum wage, employment rights, employer national insurance contributions, business rates and duty,” he continued.
Bridgen added reducing business rates could prevent some closures but warned it may be too little too late for many operators, with one pub per day already lost last year according to global tax firm Ryan.
“The Government has U-turned on what was going to be the final nail in the coffin for many pubs but what about the current issues as most are already on their knees,” Bridgen said.
“If they aren’t going to help save a key part of our culture and make our pubs viable businesses then just be honest, let us know and I can go and do something else to support my family. If they are happy to let pubs die, then change planning laws so we can turn them into flats to support the affordable housing crisis.”
Meanwhile, the Blue Ship, an independent freehouse in the Haven, West Sussex, also criticised the Government, taking to social media to slam what it described as ministerial ignorance.
Lesson learned
A post on the pub’s Facebook page said: “This is equivalent to a surgeon admitting after the operation that they hadn’t actually looked at the patient, the chart, or indeed confirmed which limb they were removing. But never mind - lesson learned, leg gone.
“Apparently, running the country’s finances doesn’t require a basic understanding of the industries you’re financially waterboarding. Pubs, cafés, restaurants and hotels, those famously resilient cash fountains, were clearly mistaken in thinking Government policy should be based on evidence, modelling, or even a cursory glance at reality.”
The post added the “casual tone” of Kyle’s admission undermined the “catastrophic error” that had affected thousands of livelihoods.
It continued: “This isn’t just incompetence; it’s ignorance wrapped in authority, sprinkled with arrogance, and served piping hot to an industry already on its knees. Government by vibes. Policy by guesswork. Accountability by shrug.
“Still, chin up - at least now [Rachel Reeves is] aware. Shame so many of the pubs are closed or on the verge of closing, the staff are gone, and the damage done.”
