Greene King, Star Pubs, Stonegate and Admiral Taverns told The Morning Advertiser (MA) the sector needed urgent action to ease cost pressures, protect jobs and support investment.
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It follows Burnham’s appointment as Prime Minister earlier this week, after he previously pledged to cut business rates for pubs, clubs and music venues by 20%.
Immediate priorities
Lawson Mountstevens, managing director of Heineken UK’s Star Pubs, said the World Cup had shown “what pubs mean to this country”, with millions of people watching England’s run to the semi final in their local.
He said: “That cannot be taken for granted and the Prime Minister needs to get round the table with the rest of his Cabinet and make securing the future of the Great British pub an immediate priority.”
Mountstevens said support on business rates was needed, alongside “a lower rate of VAT for hospitality and fairer beer duty rates in line with our European neighbours”.
Greene King chief executive Nick Mackenzie said pubs were making “on average 12p in profit for every pint they sell” and needed immediate action after years of rising labour, energy, food and drink costs.
He said: “Cutting VAT to 10% for hospitality would make an immediate impact and be a vote of confidence in pubs, restaurants, hotels, cafes, nightclubs and more besides across the UK.”
Mackenzie added he was “extremely hopeful” Burnham would deliver on his pledge to reduce business rates for pubs and create parity with online retailers.
Stonegate said its three key priorities were support for employment and job creation, a competitive VAT regime and meaningful business rates reform.
The pub company said the recent increase in employer national insurance contributions had “significantly increased” the cost of employing people across the sector.
Urgent reform
It added: “Hospitality is a people business and capable of creating opportunities in every town and city across the country.
“When the cost of employment rises, it is often entry level opportunities, apprenticeships and first jobs that come under greatest pressure.”
Stonegate said a targeted VAT reduction would stimulate consumer spending, encourage investment, protect jobs and support businesses at the heart of communities.
Admiral Taverns chief executive Chris Jowsey also called for urgent reform of the business rates system.
He said: “To help ensure the long term sustainability of the nation’s pubs we would ask the Prime Minister to urgently reform the business rates system, as well as decreasing individual rates payable by 20%, both of which would level up the disproportionate tax burden placed on pubs.”
Jowsey added increasing the threshold below which no rates are paid would support small businesses and wider high streets.
Trade bodies have also urged Burnham to deliver on his campaign pledges, with the sector calling for swift action on rates, VAT, employment costs and regulatory reform.
