Pubs are the beating heart of communities across the country. From the rural inn to the street-corner watering hole, our boozers are so much more than just a place to drink. It’s bad news for all of us, then, that this Labour Government is waging a brutal war against them.
First came the Jobs Tax. Rachel Reeves made it £800 more expensive to employ a single worker by raising Employer National Insurance Contributions in her first Budget.
Predictably, firms stopped hiring and started firing, and unemployment went up. Pubs and other hospitality, retail and leisure businesses were especially hard hit.
At the same time pubs and other high street firms have suffered the impact of rising energy bills, fuelled by Labour’s Net Zero obsession.
Then, at Reeves’ most recent Budget, it looked like there might be some hope. She said she was delivering permanently lower business rates and helping businesses in the process.
But it all unravelled very quickly. It turned out Reeves had lied – not for the first time. The reality was three years of hikes, with the bill going up by a staggering 74% for the average pub overall. For some venues the increases were set to be even greater.
That’s not just a little premium on standard bills, but a massive tax hike sending pubs into the red.
After relentless Conservative attacks and a massive backlash from horrified industry leaders, the Government is now preparing to make a screeching U-turn on its disastrous business rates hike for pubs.
This is hardly surprising, and not just because of how bone-headed the policy is. Just look at the Government’s record of flip flopping. Keir Starmer has the backbone of a flatworm and his Chancellor isn’t any better.
But whatever the details of this humiliating retreat will be – and we are still awaiting them – it’s too little, too late.
For starters, many pubs still look set to face major increases in their bills. Vague pledges of ‘support’ are extremely unlikely to result in measures offsetting the full impact of the tax hike.
And it looks like the U-turn may only affect venues formally classed as pubs. In other words, many gastropubs, hotel bars and pubs with accommodation, look set to miss out.
And then there’s shops, restaurants and other businesses that still facing crippling rate increases. This will worsen the crisis on our high streets and put prices up for consumers.
Business rates are rising across the board, up 10% in the coming year alone – a £3.5billion blow to businesses. Reports suggest any support package will be worth around £300million – a drop in the ocean in the face of the soaring tax bills.
There is no compromise on the Jobs Tax either and no plan to get energy bills down, further forcing up costs and therefore prices.
And pubs also face more red tape from Labour’s new employment laws and nanny-state regulation. Labour’s Unemployment Act will wrap businesses up in red tape and heap further costs on their shoulders. It will mean pubs are less able to give young people their first opportunity to get on the career ladder.
The truth is that as far as Labour’s reputation among publicans goes, the damage is already done. The Government has made clear its disdain for the local.
But there is an alternative.
The Conservatives will always support our pubs and we will take the action needed to save them.
We have a plan to ease the burden on pubs and help them regain their rightful place at the heart of the high street.
Central to that plan is our policy of abolishing business rates for thousands of retail, hospitality and leisure businesses on our high streets including pubs.
This will make the world of difference to local venues. It will be a lifeline for struggling businesses on the brink of closure. And it’ll be a boost for firms that want to expand and hire more staff in their local areas.
And we will also get the average pub’s energy bill down by £1,000 through our Cheap Power Plan. Pubs and other small businesses need affordable power to run, and we will deliver it.
We will also reverse Labour’s damaging Unemployment Act, giving businesses like pubs the environment they need to grow and create good jobs.
If you’re with us, join our campaign to Save Our Pubs and protect the heart of our communities – before Labour shutter them for good.
