The head of one of Britain’s best-known pub groups has launched a blistering attack on government measures, warning that “bad policy” is draining money from the hospitality industry.
Jonathan Neame, chief executive of Shepherd Neame, said Westminster’s decisions had piled “road blocks” in front of pubs, hitting profitability and choking investment.
The Kent-based company revealed a 7.9 per cent drop in pre-tax profits to £6.3 million for the year ending June 28, with the firm blaming more than half of its rising costs directly on government action.
“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,” Mr Neame told PA.
The hospitality boss highlighted a string of recent changes that have battered the sector since April — including a minimum wage hike, higher National Insurance Contributions and the new Extended Producer Responsibility packaging tax.
“These decisions have created significant strain on operators still recovering from the pandemic and cost-of-living crisis,” he said.
Despite the profit squeeze, Shepherd Neame, which runs 286 pubs, has continued investing in new sites and reported a 4.4 per cent increase in comparable retail sales.
But falling beer volumes dragged overall revenues down 2.7 per cent to £164.3million.
Mr Neame insisted the firm remained resilient, describing it as “a strong business with fabulous pubs and well-recognised brands”.
Even so, he admitted the company had been forced to absorb surging labour and logistics costs, denting margins.
The comments come just weeks before Chancellor Rachel Reeves delivers her autumn budget on November 26, with pub leaders braced for fresh financial measures.
The British Beer and Pub Association has already warned more than 2,000 pubs could close permanently in 2026 if cost pressures continue unchecked.
The British Beer and Pub Association has already warned more than 2,000 pubs could close permanently in 2026
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PAMr Neame said the industry retains huge potential if ministers ease the burden: “If the Government isn’t throwing road blocks in front of pubs, we will grow and invest.”
He stressed that the sector remained attractive and full of opportunity but argued decisions from Westminster had “absolutely made things harder”.
The Shepherd Neame chief’s blunt message adds to mounting calls from across hospitality for tax and regulatory restraint to stop Britain’s pubs being driven out of business.
This criticism comes after the announcement of ‘bottle tax’, which will likely hurt the hospitality sector.
The Government’s new Extended Producer Responsibility scheme takes effect today, adding up to 11p on bottles
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TREASURY/GETTYThe Government’s new Extended Producer Responsibility scheme takes effect today, adding up to 11p on bottles.
Industry leaders warn the levy will drive up pub prices, penalise glass and hit consumers during a cost-of-living crisis.
More than 200 pubs have already closed this year, with landlords branding the tax a “bitter blow”.
Retailers and glass manufacturers say the measure risks jobs and will keep shop prices higher for longer.