Following industry pressure, pubs are set to receive £100m a year support after business rates outcry.
This ultimately translates into a limited support package for hospitality, after a lack of VAT reduction on alcohol, which is likely to increase costs further.
This relief package is essentially giving with one hand and taking with the other.
Dan Maimone, Head of Global Customer Experience at Harri said, “Pubs have made it clear that survival depends on both meaningful government support and a favourable business environment. The decision to address business rates, and that the current environment isn’t fit for purpose, is a welcome acknowledgement of that reality.
“Tackling rates alone, however, only solves part of the problem. Any gains for pubs risk being consumed by rises to VAT on alcohol, which will further intensify ongoing cost pressures. Extended licensing hours may offer marginal opportunities to boost revenue, but they are far from a silver bullet. Without action to ease these wider pressures, many businesses will find that headline support measures fail to actually translate into real financial relief.
“Crucially, this challenge extends well beyond pubs. Hospitality remains one of the UK’s largest employers, underpinning local economies and high streets across the country. If the government is serious about protecting jobs and sustaining communities, support packages must reflect the realities facing the entire sector, not just isolated parts of it.”
