The British Institute of Innkeeping (BII) has written to the prime minister and chancellor ahead of the Budget, urging them to put 10% VAT on all pub sales at the heart of a fair tax deal.
Its latest member survey shows what publicans could do with that support: 75% would invest in their pubs, 62% would increase staff hours and grow their teams, and half would spend more with local suppliers.
Yet only one in four members reported making a profit between January and August. One in five expect to close if the current cumulative tax burden remains; that rises to two in five if taxes increase again.
“Our members are ready to invest,” said Steve Alton, chief executive of the BII. “They want to develop their pubs, grow their teams, and spend more with the local businesses that supply them. Give them a fair tax deal and that investment will reach communities across the UK.
“But even after a strong summer for trade, too many publicans have little profit to show for the long hours they put in. Staff costs, energy bills and unfair cumulative taxation are undermining businesses that communities depend on. Around 40p in every £1 spent in a pub now goes to the Treasury. That is holding back the very investment, employment, and growth that the government wants to see.
“The warning in our survey is stark. If taxes rise again, two in five of our members expect to close. These are people running good, long-standing pubs. Losing them would mean lost vital local jobs, support for local suppliers, and places that bring people together in their communities.
“Prime minister, chancellor: use this Budget to give pubs a fair deal, with 10% VAT on all pub sales at its heart. Back our publicans and they will deliver in every postcode. Tax them harder and thousands of communities could lose their pub.”
