Speaking on LBC’s Tonight with Andrew Marr yesterday (13 April), Kerridge said operators across the sector are facing “incredibly high costs”, with some now running at “costs equal to 100% of their turnover”.
“Most operators in the hospitality industry, whether it be a coffee shop or a restaurant, they are all operating on incredibly high costs,” he said.
‘Margins eradicated’
“Food inflation has gone up, national insurance, minimum wage. There are so many different business rates, so the margins have been completely eradicated.”
Kerridge urged the Treasury to “loosen those purse strings” and bring VAT in line with European markets, where rates are significantly lower than the UK’s 20%.
He added that while support may come at a short-term cost to the Exchequer, it would drive long-term growth.
“We are a growth sector. It’s one that brings long-term tax revenue. It’s an investment and growth process rather than just a bailout.”
Continued pressure
The comments come amid continued pressure on the sector from rising labour, energy and property costs, alongside changes to business rates support.
Kerridge has previously warned that cost increases risk pushing pubs to unsustainable levels, with many sites already operating above viable margins.
He has also been vocal on the impact of business rates, describing increases as “killing pubs off” and warning that some operators face significant uplifts in rateable values.
