Publicans across the South West are issuing an urgent plea to the government, warning that the Great British pub is at a critical tipping point due to mounting financial pressures. With the Autumn Budget looming, landlords say that without intervention, thousands of community hubs face permanent closure.
A Perfect Storm of Rising Costs
The stark warning is supported by data from the British Beer and Pub Association (BBPA), which predicts that more than one pub will close every day in 2025. This equates to an estimated 378 closures across England, Wales, and Scotland.
Kevin Georgel, Chief Executive of St Austell Brewery, which operates 164 pubs in the West of England, stated the government must act to protect the sector. Our sector contributes tens of billions to the economy, yet pubs are under increasing pressure from unsustainable tax burdens, he said. He identified business rates as the most pressing issue, highlighting that relief was cut from 75% to 40% in the last budget, adding thousands of pounds to annual bills.
Publicans on the Frontline
The human impact of these financial strains is felt daily by publicans. Damian and Miranda Knight, who have run pubs with St Austell Brewery for 12 years and now operate the Cornubia Inn and Royal Standard Inn in Hayle, Cornwall, say the current climate is unprecedented.
Our sales are up year on year but turning that into profit is the struggle, explained Mr Knight. He detailed how every cost has risen, from hiring bands for live music nights to karaoke fees and staff wages, squeezing their margins to the limit.
Further east in Exeter, Adam Holland and Natalie Radford, who run the Blue Ball Inn and employ 33 staff, echoed these concerns. They pointed to National Insurance increases as a major challenge. We can’t keep hitting our customers with higher costs, said Mr Holland. Pubs are the centre of communities, and these are very challenging times.
A Call for Government Action
In response to the crisis, the industry is rallying behind campaigns for support. St Austell Brewery is backing the BBPA’s Long Live the Local campaign, which calls on the government to ease the financial burden on pubs through reforms to beer duty, business rates, and VAT.
All eyes are now on Chancellor Rachel Reeves, who is set to deliver the Autumn Budget in Parliament on Wednesday, November 26. The future of thousands of pubs and the communities they serve may depend on the decisions announced.
