A pub landlord has cast doubt over Labour’s potential U-turn on hospitality business rates, as he stressed the “unfair burden” placed on the industry by Chancellor Rachel Reeves.
Speaking to GB News, owner of The Wonston Arms in Hampshire Matthew Todd said the tax hikes announced in November’s Budget were “preposterous”.
GB News understands Chancellor Rachel Reeves is preparing to U-turn on her plans to axe business tax relief for parts of the hospitality industry in a much-needed win for Britain’s pubs.
Criticising Labour’s tax raid on pubs, Conservative leader Kemi Badenoch told the People’s Channel: “Labour MPs have come back from Christmas break, where they were banned from every single pub in the country, and they suddenly realised that people don’t like them. That’s why they’re pushing for this U-turn.”
Asked by host Stephen Dixon whether he is “breathing a sigh of relief” over the apparent U-turn, Mr Todd told GB News: “Not yet. We’re here because Rachel Reeves obviously announced in the Budget about the changes to the business rates.
“But what she didn’t mention on that day was that the business rates reevaluations were being announced by another department, so it was only half the story.”
He added: “And I’m sat here thinking, we need to see what they’re going to announce, because we’ve campaigned as hard as we could really across the country to just say this was the last straw. This was going to be the end for so many of our vital pubs and communities.
“Because the sheer increases in the business rates amount was just preposterous. So I’m sat waiting here to see what the news is.”
Landlord Matthew Todd has cast doubt over Labour’s potential U-turn on hospitality business rates
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GB NEWS
Noting the concerns of pub-goers in his establishment, Mr Todd revealed: “Last night in the pub, that was the subject, everybody in the pub was just asking us why.
“Why are you being treated this way, Matt? Why are pubs being treated like this? It’s just constant, constant, cost pressures and it’s cost pressures coming from an area that we can’t control.”
He continued: “It’s taxes that are being levied, bias on the Government, 40p of every pound that’s spent across the bar goes straight to the Government.
“The customers are seeing that now, and they’re really clear of the fact that it’s a huge amount going in taxation, and it’s an unfair burden on trying to run a business, which mine particularly is driven entirely for the community. That’s what we’re here for.”
A Labour minster has claimed there will be a ‘U-turn on pubs’ when it comes to the Chancellor’s business tax relief plans | GETTY / PA
Stressing the “unfair burden” placed on publicans by the Government, Mr Todd detailed his struggles of keeping his pub afloat.
He told GB News: “It’s unfair, it’s not right, it doesn’t need to be at that level. We have the highest level of VAT in hospitality compared to any other country. Other countries across Europe it’s 13 per cent, we pay 20 per cent on everything in VAT. So that goes straight to the Government.
“So I’m explaining and I give customers all the details, they know how much the cost of a pint of beer is costing me. They know what the utilities are like because they’re seeing them themselves.
“But you explain some of the levels of how much taxation is coming through in terms of the rates, and these guys just can’t believe it’s a phenomenal amount compared to what the consumer is paying.”
Mr Todd told GB News that his customers are shocked by his costs
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GB NEWS
He added: “This is a public house, it’s a pub, it’s a very original style. I’m from the north of England, from Barrow, and I built this place up from scratch to try and bring a northern style pub that I remember from my days in Cumbria.
“It’s a front room and people come here to come and socialise in the front room of a public house, and so they understand the cost pressures, and it’s a bizarre conversation to have across the bar when they’re the ones telling us this is not right.”
As host Stephen Dixon revealed he is also from Barrow, the landlord concluded: “So you can picture those northern pubs, front room pubs, that we were brought up in. The parents took us there and we behaved ourselves and we did our homework, and this is what the little Wonston Arms is, and this is what I want it to continue to be.
“But at the moment we are being so pressured by, like every other pub, the amount of taxation that is coming through. It’s a burden that’s unfair.”