Thwaites ‘extremely nervous’ Rachel Reeves will raise taxes in Autumn Budget
Beer brewer Thwaites is “extremely nervous” about the possibility of Chancellor Rachel Reeves raising taxes further in her Autumn Budget.
The Lancashire-headquartered group, which also owns pubs and hotels, added its industry is “under tremendous pressure” from Reeves’ first Autumn Budget due to the increases in the National Minimum Wage and the employer’s National Insurance contributions.
In its annual report, Thwaites said “pubs and the wider hospitality industry are over-taxed”, adding that it hopes the government “has got the message that enough is enough”.
The group did point to expectations that the Bank of England will reduce interest rates further – a move which it said “should serve to ease the burden on businesses, our customers and the cost of servicing the enormous national debt”.
The comments come as Thwaites revealed its turnover increased from £115.5m to £120.6m in the year to 31 March, 2025, while its pre-tax profit also rose from £9.1m to £9.8m.
Rachel Reeves told ‘enough is enough’
On its outlook, Thwaites said: “We have started the year with a sustained period of good weather, which has demonstrated that if you are ready, when the conditions are right, pubs and hotels benefit from being a familiar favourite for the great British public.
“Our investments from last year are open and going well, the outdoor investments that we have made over the last few years are doing their job.
“After some political uncertainty last year things feel more settled, however we are wary of more tax increases for the sector.
“It is already under tremendous pressure from last October’s increases to National Minimum Wage and National Insurance, as well as increased Business Rates through reduction in reliefs.
“Pubs and the wider hospitality industry are over-taxed, and we hope the government has got the message that enough is enough.
“It seems that businesses are more active than they were last year, and that bodes well for our hotels.
“Further interest rate reductions are forecast, which should serve to ease the burden on businesses, our customers and the cost of servicing the enormous national debt.”
In November 2024 Thwaites, which has 200 tenanted pubs and hotels across Cumbria, the Midlands, North Wales and Yorkshire, said the hike in employer’s National Insurance contribution would place a “significant burden” on it.
In its annual report, the group said the tax rises in the Autumn Budget in 2024 “were worse than feared, particularly the increase in National Insurance contributions for employers”.
It added that they “created a headwind that pubs and hospitality could have done without” and have added £2.7m per annum to its costs.
‘National Minimum Wage rises should match inflation’
On its current trading, Thwaites said: “The company has delivered both top line growth and growth in operating profit of 4.4 per cent in the past year.
“This has been delivered against a backdrop of political uncertainty and fragile consumer confidence.
“We have undertaken several significant capital investments to continue to improve the quality of our assets, and the financial results have been delivered despite the disruption that this has inevitably caused.
“We get asked a lot about how we are getting on with Langdale Chase, and we are pleased with the way that it is going but it has more to give as it continues to establish itself as the best hotel in the north of England.
“The inns are trading well and whilst the pubs have had a tricky year, largely as a result of poor weather, we have more open this year than last and they have traded very well when the conditions have been in their favour.
“We completed on the acquisition of the Buck Inn, Malham in March 2025 which we were pleased to be able to secure, and which will trade as one of our Inns.
“The general trading environment feels more settled than it has done for some time, although we are extremely nervous of additional tax increases in the Autumn.
“Furthermore, we would like to see increases to National Minimum Wage over the next few years more closely aligned to inflation.”