Guy Richardson, owner of The Bright Star pub in Hertfordshire, has warned that Christmas trading could be “the worst in 40 years” as rising business rates, increasing supply costs, and the ongoing cost-of-living crisis hit the hospitality sector hard.
Speaking to GB News, Mr Richardson described his pub as “very, very quiet” and said he had already cut back on staff.
Nearly 5,000 much-loved small pubs face huge business rate bills for the first time next year, as the Government increases the rateable values of their premises.
At the same time, temporary rates relief will be scrapped and replaced with a far less generous system, hitting small pub owners even harder.
Mr Richardson told GB News: “We all want Christmas to be great. We really do.
“At the end of Christmas will come January. Then who knows what’s going to happen.
“There’s there is a significant number of pubs that are worried to bits that they won’t be trading by Easter.”
He added: “I don’t know what there is left to say to them [Labour] anymore. It doesn’t matter what we tell them, they’re not prepared to listen or act.
Guy Richardson said some pubs are worried that they won’t make it to Easter
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GB NEWS
“I’ve recently joined forces with a few other landlords from across the country, and there are now quite a few of us all saying the same thing. It really feels pointless talking to politicians.
“I had a meeting with our new MP after the last election. We sat together for 10 to 15 minutes discussing the potential issues, and it was clear as day that he wasn’t interested.
“At the end of the meeting, he said he would take it back, but he didn’t write a single note.
“So what does that tell us? That tells us they’ll pay lip service, but that’s about it. They certainly wouldn’t pay for a pint.”
Mr Richardson described his pub as ‘very, very quiet’ and said he had already cut back on staff
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Guy RichardsonIn last month’s Budget, Chancellor Rachel Reeves promised “permanently lower tax rates” for more than 750,000 retail, hospitality, and leisure properties.
But the relief will be paid for by higher rates on properties valued at £500,000 or more and many pubs will fall into this bracket when they are revalued next year.
At the same time, pubs will lose their 40 per cent rates relief from April, adding to the financial pressure on struggling businesses.
This will be replaced by a five per cent discount to the multiplier that calculates their bill, much less than they had hoped for.
Mr RIchardson added: ““Yeah, the only thing that’s come early is all these extra increases in bills.
“I think the rates alone are somewhere in the region of £8,000.
“That means I’ve got to sell another 170 pints of beer a week just to cover it.”
He explained that he will only make about 20p profit per pint.