Pub closure warning: Many landlords only make 12p a pint

Pubs look wide closures unless the chancellor announces an hold to concern rates alleviation successful adjacent week's Budget. the UK's biggest pub institution has warned.

David McDowall, brag of Stonegate Group, whose pubs see Slug & Lettuce, Yates's and Walkabout, said thousands of landlords presently marque conscionable 12p of nett for each pint of brew they sell.

Help connected concern rates for the hospitality assemblage successful England and Wales is acceptable to tally retired successful April.

Mr McDowall said that if it is removed, tiny publicans volition spot their concern rates measure quadruple from April.

Along with different costs the businesses are facing, helium feared "they don’t person immoderate much to give".

Rates alleviation was introduced for pubs, restaurants, bars and cafes successful 2020 successful effect to the Covid pandemic erstwhile businesses were forced to close.

In the Budget successful November past year, the past Chancellor, Jeremy Hunt, announced it had been extended until April adjacent year.

The measurement means that companies successful England tin assertion 75% alleviation connected concern rates up to £110,000, oregon 40% for firms successful Wales.

Mr McDowall told the BBC's Today programme that the hospitality manufacture has faced a "barrage" of challenges successful caller years.

These see recovering from Covid arsenic good arsenic precocious inflation, vigor costs successful the aftermath of Russia's penetration of Ukraine and the effect of the outgo of surviving connected customers.

"The implicit removal of that complaint alleviation would beryllium very, precise costly for pubs, bars, restaurants and cafes up and down the magnitude and enactment of the UK", helium said.

The British Beer and Pub Association precocious revealed that landlords marque 12p nett per pint. The mean terms of a pint of draught lager was £4.79 successful September, according to the Office for National Statistics.

Mr McDowall is 1 of a fig of representatives from the hospitality manufacture who this week signed a missive to Chancellor Rachel Reeves asking for alleviation to beryllium extended.

It warned astir "the onrushing concern rates cliff edge" facing firms 153 days aft she delivers the Budget.

On Thursday, Hospitality UK and the British Retail Consortium, whose members besides payment from relief, said that successful the twelvemonth to March, businesses successful these sectors paid astir £9bn successful concern rates.

This is astir a 3rd of the full magnitude of gross the authorities raises from concern rates.

They said that if alleviation is removed, it would outgo hospitality and retail an further £2.5bn.

Earlier this week, Hospitality UK besides called connected the chancellor to instrumentality to Labour's manifesto pledge to betterment concern rates.

The magnitude businesses wage is based connected however overmuch yearly rent could beryllium charged connected the premises - which is known arsenic the rateable value.

Hospitality UK argued that, due to the fact that its businesses tin usually beryllium recovered successful cardinal locations specified arsenic High Streets, the outgo to companies is high.

Without betterment "investment successful our precocious streets volition beryllium curtailed, employment opportunities volition beryllium squandered and ultimately, we volition spot higher levels of concern failure," it said.

The Treasury has been contacted for comment.