Cornwall’s Landlords Call on Government to Support Pubs Ahead of Crucial Budget

As the Government prepares to announce the next Budget later this month, pub landlords across Cornwall and beyond are voicing their concerns over potential tax hikes that could threaten the future of the industry. With rising energy costs, wage increases, and new alcohol duties already straining businesses, the looming possibility of losing the 75% relief on business rates could spell disaster for many pubs.

If the business rates relief is removed, the average pub could face an additional £12,000 in costs, leaving many questioning their financial viability. These concerns come on top of other recent challenges, including the increase in alcohol duties and the prospect of a smoking ban in pub gardens.

“Relentless and Exhausting”: Pubs Struggling to Stay Afloat

Mark Holden, who runs three St Austell Brewery pubs in Cornwall under the Inn Cornwall brand, including The Victoria Inn in Roche and Threemilestone, and The Norway Inn in Perranworthal, has been a landlord for 15 years. He explained the challenges his businesses are facing:

“We’ve already had to adjust the price point of our beer three times in the last 18 months, and there are concerns about the energy crisis increasing further too,” Mark said. “Add to that the beer duty increases, there’s only so much we can do with every impact which has come our way. Ultimately that cost goes onto the guest, but it’s too much too quick.”

Mark also highlighted the value pubs bring to their communities, particularly through apprenticeship schemes. He added that the continuation of discounted business rates would give him the confidence to invest further in his businesses, increase employment, and potentially grow. However, the uncertainty surrounding the sector has left him hesitant: “It’s relentless and exhausting having to navigate constant change. The UK business sector as a whole needs stability.”

“It Doesn’t Make Sense”: Rising Costs Eating Into Profits

Alex and Tanya Williams, who have run the Polgooth Inn near St Austell for almost 14 years, also shared their frustration. While their pub is busier than ever, the rising costs mean that profits are not following suit.

“Our takings are up this year, yet we are not benefitting from it because of extra costs like energy and the increase of wages,” Tanya said. “It doesn’t make sense that people are walking in and seeing a really busy pub – which is great – but for us, we’re not making any money from it, and it’s an incredibly disheartening situation to be in.”

Employing around 48 people, Alex and Tanya are worried about the future of their business if supportive measures aren’t introduced in the Budget. “We’ve been running pubs for this long, we don’t want it to get the better of us,” Tanya added. “It’s everything – it’s the wages, the rates, the duty, we’re so nervous about what the future holds.”

“The Straw That Breaks the Camel’s Back”

Dan Cocks, who took on the Edgcumbe Arms in Cremyll, Cornwall, with his partner Vicki this summer, echoed many of these concerns. Having just navigated the challenges of the Covid-19 pandemic, Dan now faces increased energy costs and rapid rises in the National Minimum Wage.

“We got over Covid, then there were hikes in energy, and rapid increases in National Minimum Wage all of which has been extremely challenging and left us with no choice but to pass price rises to customers who are also already struggling,” Dan explained. “If the business rate relief goes, that’s the end. It will be the straw that breaks the camel’s back.”

Dan, like many in the industry, is calling on the Government to work with the sector to ensure pubs can continue to operate and support the local economy. “Pubs are essential to communities,” he added. “Running a pub is all about the people – people come in and they want to unload their troubles and unwind after a day at work. It’s what we know and love, and we enjoy being part of a community.”

A Call for Action: Industry Urges Government to Support Pubs

The British Beer and Pub Association (BBPA), alongside pub operators like St Austell Brewery, are urging the Government to introduce measures that will help the industry survive. Kevin Georgel, Chief Executive of St Austell Brewery, has called for a cut in beer duty, business rates reform, and a commitment to maintain the 75% business rates relief.

“The time has come for the Government to finally recognise the enormous economic and social contribution that pubs make and act decisively to provide a level playing field allowing them to continue to invest and create employment,” Kevin said. “Our industry can’t bear more punitive Government-imposed burdens or taxation – and for many licensees, it would leave no alternative than to close the doors on these beloved institutions.”

As the Budget announcement approaches, the future of pubs across Cornwall and the UK hangs in the balance. To support local pubs, the BBPA has launched the Long Live the Local campaign, which encourages the public to back their local pubs by signing a petition and writing to MPs about the challenges the industry faces.

Will the Government step up to protect these vital community hubs, or will rising taxes lead to more closures? The coming weeks will be crucial for the future of the sector.