‘It’s getting harder and harder to run a pub’

A landlady has said it is “becoming harder and harder” to run a pub, as she calls on the government to provide more suport.

Emma Gibbon, who owns two pubs in Cheltenham, met with the Business and Trade Minister to explain the challenges pubs are facing, including “price increases, the budget, Covid and debt hanging around”.

She is calling for a change to National Insurance contributions for employers, which increased last year, and a reduced rate of VAT for the hospitality sector.

The government said it is cutting the cost of licensing, extending business rates relief and cutting alcohol duty on draught pints.

But Ms Gibbon said it is the National Insurance contributions that are having a big effect.

“We pay taxes that other businesses don’t and I appreciate that everybody has to pay their National Insurance but there is a higher proportion of young part time workers in hospitality,” Mrs Gibbon said.

“It really does have a knock on effect.”

The National Insurance rise for employers has meant some hospitality workers have called for a VAT cut.

The British Beer and Pub Association [BBPA] want the government to reform business rates to “unlock growth in every town and village” across the country.

“We are asking the government to recognise the beer and pub sector and the role that they play, not only economically but also socially,” said chief executive of the BBPA, Emma McClarkin.

“We desperately need the government to step in to reduce the cost of doing business, with business rate [reform].”

The group estimates one pub a day is closing down in the UK in 2025.

Mrs Gibbon met the Business and Trade Department as part of the British Institute of Innkeeping, representing 13,000 pubs across the country.

She described it as “a really good opportunity” to talk about “the trading realities” pubs are facing.

“I think it opened his eyes to some of the challenges that we face. It’s all very well when you put something in and you don’t see the follow on that has on the businesses you’re putting the pressures on,” Mrs Gibbon said.

A government spokesperson said it is supporting the hospitality sector in a number of ways, adding that it understands “pubs are vital to local communities”.

“We’re cutting the cost of licensing, helping more pubs, cafes and restaurants offer pavement drinks and al fresco dining, and extended business rates relief for these businesses,” they added.

The spokesperson added the government it also “cutting alcohol duty on draught pints and capping corporation tax”.

The sector has been lobbying the government following the announcement of the Autumn budget earlier this week.