John Healey announces alcohol tax relief.
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Pub landlords in Swansea have called for greater government support after Chancellor John Healey’s Budget failed to deliver the VAT reduction sought by the hospitality industry.
More than 400,000 people signed a petition calling for VAT to be reduced for hospitality businesses, but the rate remains at 20 per cent.
Iwan Buckey, general manager of Sessions by Mumbles Brewery, said the cost of beer duty and VAT was among the biggest challenges facing the business.
He said: “In Britain, we’ve become the gold standard of public houses and what a pub means to people.
“It’s a third space which is dying out, and it’s a place for people to relax, chill out and enjoy each other’s company.
“To have that place accessible and affordable to people is so important.”
Mr Buckey called for reductions in VAT and beer duty, explaining that the business faces additional costs because it both brews and sells beer.
He welcomed efforts to reduce business rates but questioned whether they would make a significant difference.
“I think looking at business rates is a step in the right direction, although I feel it may be more of a gesture than anything.
“I don’t think it will greatly affect many operating premises or operating costs. I think there are greater measures to be taken to ensure the future of hospitality in the UK.”
Meanwhile, Cosmin Vitonesc, landlord of the Brunswick Arms in Swansea, said running a community pub had become increasingly challenging.
Having taken over the pub just ten months ago, he said rising costs and changing customer habits were making it harder to operate.
“People don’t go out as before because everything is expensive everywhere, even in supermarkets,” he said.
“I think people are just more wise when they’re spending.”
Mr Vitonesc said reductions in VAT or support with energy bills could allow pubs to lower prices and encourage more customers through their doors.
He also warned that increases in the National Living Wage would add to staffing costs, potentially putting further pressure on prices.
However, Megan Mortimer, head of marketing at Secret Hospitality Group, welcomed the Chancellor’s announcement of a 3.9 per cent rise in minimum wage rates.
She said the group was a strong champion of hospitality as a long-term career and believed higher wages could help encourage more people to build a future in the industry.
Business rates are devolved in Wales, with the Welsh Government announcing a permanent 30 per cent reduction for eligible hospitality, leisure and accommodation businesses with a rateable value below £51,000 from April 2027.
However, publicans say business rates relief alone will not address the wider pressures facing the sector.
Despite some measures offering support, hospitality businesses in Swansea say more needs to be done to tackle rising operating costs and ensure pubs remain at the heart of their communities.
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