Small pubs at risk of closure next year without business rates relief, Fuller’s boss warns
The chief executive of Fuller’s, Simon Emeny, has said that an extension on business rates relief could be the difference between some small pub businesses handing back their keys next year or remaining open.
Speaking to City A.M, ahead of the autumn budget next Wednesday, the frontman for the near urged government officials to keep the support measure that has existed for the last year in place.
Simon Emeny said: “The hospitality sector, and in particular the pub sector, helps carry a disproportionate burden of business rates in the UK.”
“A lot of smaller operators in particular have been able to keep going in 2023 because of the business rates relief that the government provided. I think in a worsening economy it will be critical that the government maintains its relief.”
Business rates are a tax on property used for business purposes such as pubs and shops. The government has frozen the increase for the past three years in light of the pandemic and subsequent economic fall out.
The government also introduced a 75 per cent discount on pub and retail rates for the 2023 to 2024 billing year, which is set to end next March.
Emeny’s call comes amid a challenging time for the UK’s pub sector, which has been battered in the last year by soaring energy and supply costs due to inflation.
The pandemic also damaged trade for many pubs in the capital, as lockdown laws stopped commuters from going into the office.
In the first half of this year alone some 383 pubs were also permanently closed, according to a recent study from Altus Group, as these measures continue to take its toll on the sector.
Emeny added: “I think that this business rates decision for many smaller operators will be the difference between staying open in 2024 and handing back the keys.”
A swarm of leading hospitality figures have placed extra pressure on Chancellor Jeremy Hunt ahead of his statement next week.
Some 230 businesses, including Burger King, Greene King and Mitchells & Butlers, penned a letter to the Conservative MP urging him to freeze business rates and extend the current relief package.
Kate Nicholls, UKHospitality chief executive said: “It’s imperative that the Chancellor listens to our collective calls for support and takes clear action at the autumn statement to extend the current relief measures for a further year to protect the vital community assets that make up the UK’s vibrant hospitality sector.
“Hospitality is at the heart of our communities and it’s essential we do all we can to protect businesses in the sector and the value they bring, from driving economic growth to creating jobs.”
City A.M has contacted The Treasury for a comment.