Chancellor’s tax rises are ‘sucking cash’ out of pubs – London Business News | Londonlovesbusiness.com

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A major pub group is calling on the government to stop making “bad policy” decisions as they are “sucking cash” out of the pubs.

Jonathan Neame, the chief executive of hospitality firm and brewer Shepherd Neame told the PA news agency there is still hope in the industry.

He said that hospitality sector needs to have reduced policy action for the industry to be successful.

In the 2025 Autumn Budget the Chancellor announced increases to the employer’s national insurance and the national minimum wage which cost all businesses millions.

Neame said: “If you look at the cost rises we’ve faced, more than half of that is down to bad policy and that it is all sucking cash out of businesses like ours.

“If the Government isn’t throwing road blocks in front of pubs, we will grow and invest.

“The sector is full of opportunity and it is still an attractive area but decisions from Government have absolutely made things harder, and it is important to move on from recent negativity.”

Neame added, “Shepherd Neame is a strong business with fabulous pubs and well recognised brands.

“The company has delivered a solid performance against a challenging backdrop for the sector with consistent outperformance of the market in pub trading, whilst absorbing further cost inflation, in particular in labour and logistics.”

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