Publicans across the South West are calling on the government to take positive action and ease mounting financial pressures on pubs ahead of this week’s Budget, warning that the sector is at a critical tipping point.
They say rising costs and increased taxation are threatening the survival of thousands of pubs – many of which are the beating heart of their communities.
Kevin Georgel, Chief Executive of St Austell Brewery, which operates 164 pubs across the region, said: “Our sector contributes tens of billions to the economy, yet pubs are under increasing pressure from unsustainable tax burdens. Business rates are the most pressing issue – relief was cut from 75% to 40% at the last Budget, adding thousands of pounds to annual rates bills. We need meaningful reform that works for businesses, not against them.
“The government must act now to keep a pint of great British beer affordable, protect jobs and ensure pubs remain open for generations to come – they are a vital part of British life.”
The warning comes as the British Beer and Pub Association (BBPA) predicts more than one pub will close every day in 2025 – an estimated 378 closures across England, Wales and Scotland.
Damian and Miranda Knight have run pubs with St Austell Brewery for 12 years and are the current publicans of the Cornubia Inn and the Royal Standard Inn in Hayle, two pubs which form part of St Austell Brewery’s 120+ strong leased and tenanted estate. Despite bouncing back after COVID, Damian says the current financial strain is unprecedented.
“The spring budget changes, with business rate relief decreasing and National Insurance increasing, has been extremely tough. Our sales are up year on year but turning that into profit is the struggle. Everywhere we look, costs are rising. At the Cornubia, our live music nights are popular, but hiring a band costs more, karaoke fees have gone up, and our wage bill has soared.”
Adam Holland and Natalie Radford run the Blue Ball Inn in Exeter, another pub in St Austell Brewery’s leased and tenanted estate. Adam, who has been a publican for 20 years, said: “We have 33 staff on the payroll, so National Insurance increases have been really challenging. We’re not like supermarkets that can raise prices and people will pay because they need essentials. We can’t keep hitting our customers with higher costs. Pubs are the centre of communities, and these are very challenging times.”
St Austell Brewery is backing the BBPA’s Long Live the Local campaign, which is calling on the government to ease financial pressures on pubs, including beer duty, business rates and VAT.
To sign the petition and contact your MP, visit: www.longlivethelocal.pub/staustell.
