Fuller’s slams ‘unprecedented government interference’ in pub sector
The boss of Fuller’s has slammed Labour for “unprecedented government interference” into the pub sector, which he says is to blame for 5,800 pubs closing in a decade.
Simon Emeny, executive chairman of Fuller, Smith and Turner, has launched a broadside against the government’s hikes to business rates, national insurance contributions and alcohol duty.
“When I reflect on the changes seen in our sector over the past 10 years, it has been a period of unprecedented government interference, additional taxes and regulations,” he said.
The pub boss also took aim at Labour’s apprenticeship levy, Extended Producer Responsibility (EPR) packaging tax, green energy taxes, the sugar tax and the proposed holiday levy.
The pub chain’s attack on Labour taxes came as it saw revenue bounce six per cent to £398m and earnings per share jump 38 per cent to 47p.
Fuller’s pre-tax profit dipped to £29.5m because last year’s figure was boosted by its £17m sale of The Mad Hatter pub and hotel in Southwark.
Labour must review taxes on pubs, Fuller’s says
Emeny said the government’s proposals to crack down on flexible work and collective redundancy under its Employment Rights Act “add extra cost and bureaucracy”.
These new rules cause pubs, “that are famed for delivering part-time jobs for both younger and older workers, to rethink their hiring strategy,” he said.
He urged the government to review the tax burden facing the hospitality sector, which employs 3.6m people and contributes £96bn to the economy.
The pub firm said its tax burden jumped to £8m in the year to March, as it “mitigated” some of the effect of higher employment costs through “labour efficiency”.
But Fuller’s said it saw like-for-like sales at its managed pubs increase in food (3.5 per cent), drink (5.8 per cent) and accommodation (4.9 per cent).
The firm has seen sales grow 4.4 per cent year on year in the first 10 weeks of the new financial year, as it plans to pile £30m of new investment into its estate.
Fuller’s is expanding its investment in historic properties, having recently completed million-pound upgrades in sites in Tower Hill and Waterloo.
The pub chain targets affluent clientele through high-quality buildings and fresh food, and analysts at Investec said this approach “should continue to pay off”.
Sales up ahead of World Cup
Emeny said: “As we move into our summer season, preparations have gone well.
“Our garden investment programme has seen fresh space created for peak trading, advance bookings for the World Cup have been strong, and we are seeing increased demand for staycations benefiting our excellent rooms business.”
The bosses of rival pub chains Greene King and JD Wetherspoon said earlier this week that they are hoping for a much-needed sales boost from the World Cup.
Shares in London-listed Fuller’s boomed by nine per cent on Wednesday’s early trading, to 716p, leaving the stock level in the year so far.
Fuller’s operates nearly 400 pubs across London and the South East, including the Counting House on Cornhill, the Banker on Cannon Street and the Saint on Bow Lane.
The pub firm’s origins lie in Fuller’s Brewery in Chiswick, which it sold in 2019.