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Publican Anthony Pender has told The Mirror what government help pubs need in order to survive after a challenging time for the industry
A pub landlord has spoken out about what is needed to save ailing British pubs amid fears for his own business.
Anthony Pender told The Mirror he will have to find an additional £100,000 worth of revenue if small business rates relief ends in March.
Anthony, 42, said while his pubs, The Somers Town Coffee House near London’s Euston Station and The Victoria in Mile End, in the East End of the capital, are successful and well-run, he has concerns for the future.
He previously ran six venues but had to sell four to survive – and currently breaks even rather than turning over a profit.
Anthony said: “For us to make that £100,000 we would almost have to be taking £500,000 in additional revenue as we still have to pay the VAT, staff and for the products. It won’t be achievable and we couldn’t do that through price increases. At the moment it feels like small businesses and pubs have to pay a disproportionate amount when a lot of people don’t have to.”
Anthony said if the business rates relief does end on March 31, he would have to mitigate costs and make sacrifices, such as reducing wage cost, talking to suppliers to see if they can get a better deal and raising prices.
He added: “Businesses can close – there needs to be long-term rates reform. My pubs are perceived as some of the more successful, so if I am feeling that then a lot of other publicans will have failed before me.”
Anthony is also concerned about what losing pubs could do to Government coffers. He said: “I pay over £1million in tax. If I am pushed over the line because of 10% of that, the Government loses that amount. Currently the country is losing 35 to 36 pubs a week. If this goes up to 60, what will the impact to the Exchequer be?”.
It came as new data from the Campaign for Real Ale this week predicted around 1,200 pubs could close this year. Pubs have faced many difficulties in recent years, from soaring business rates and energy bills to customers cutting back on spend due to the cost-of-living crisis.
Prices have also risen, with the average pint now costing £4.80 according to the British Beer and Pub Association, leaping 13% in the past 12 months.
Anthony said he has put prices up. He explained: “Revenue increased slightly this year mainly because of price increases through inflation. We are seeing above-inflation price increases coming through from brewers. Products such as draught Guinness have seen big price rises to pubs – 48% since pre-Covid is what we have seen. The feedback from customers is that it is too expensive.”
CAMRA and the BBPA have called for help for pubs in the Budget, such as reform business rates and maintaining the vital 75% business rates relief.
Chris Jowsey, CEO of community pub group Admiral Taverns, said: “The pub and brewing industries together contribute over £34 billion to the UK economy each year and support over one million jobs.”
He added: “However, in recent years, they have continued to face ongoing challenges and major economic shocks that put many small businesses at risk of closure, despite the vital role they play within their communities. It is incredibly disappointing the government is proposing to increase taxes on pubs when it could be supporting opportunities for growth and incentivising businesses to invest instead.”
A HM Treasury spokesperson said: “We’re supporting businesses like our well-loved pubs through pledges to cap corporation tax at 25%, make the business rates system fairer, and to publish a business tax roadmap so that future investments can be planned with confidence.”
