PUBLICANS from Surrey and Hampshire delivered a stark warning last month to Conservative MP Gregory Stafford, describing Labour’s economic policies as a threat “bigger than COVID” to the future of British pubs.
At a roundtable organised by Mr Stafford and supported by the British Institute of Innkeeping (BII), local pub owners painted a dire picture of the challenges they face ahead of Labour’s April fiscal changes.
The meeting, held at The Castle pub in Mr Stafford’s Farnham and Bordon constituency, raised alarm over Labour’s Autumn Budget and a range of new economic measures, including a minimum wage hike rise for under 23s, national insurance increases and cuts to business rates relief.
Many publicans reported that higher staff costs have already forced pubs to cut back, with some closing on Mondays or scaling back services like breakfast offerings in Farnham. One local publican said, “The new Employment Rights Bill is just another burden of bureaucracy on an industry already pushed to the brink.”
Another pub owner compared the current situation to the pandemic: “[At least] during COVID, we had support. Now, we’ve been hung out to dry.”
Mr Stafford, who has previously lobbied the Treasury for VAT cuts in hospitality, did not mince words after the meeting:
“Labour’s policies are a wrecking ball for our pubs. The Chancellor has handed down a death sentence to the British pub as we know it.
“Hospitality is the UK’s third-largest employer and a cornerstone of our communities, yet Labour has loaded it with crippling costs and bureaucratic red tape. During COVID, there was a lifeline. Now, businesses feel abandoned and betrayed.
“This isn’t just bad policy – it’s economic vandalism. Without urgent action, Labour will have the blood of Britain’s pubs on its hands.”
The industry, already battered by the pandemic and the fallout from the war in Ukraine, now faces what one bar owner called “a perfect storm.” Another attendee said, “The higher cost of staff means we’ve had no choice but to close on Mondays. It’s heartbreaking to cut back services, but the Chancellor has left us with no options.”
Considering the bleak future set out in the meeting, Mr Stafford is now urging constituents to make their views known through a survey on his website where they can indicate their support for potential measures including a cut to VAT, greater business rates relief and a return to the previous threshold for Employers’ National Insurance contributions.
The British Institute of Innkeeping also warned that Labour’s Employment Rights Bill, which scraps zero-hour contracts and introduces a higher minimum wage for young workers, could destroy job opportunities for students and part-time workers.
Molly Davis, Head of Communications at the BII, commented: “We support our 13,000 members, providing advice and guidance on running successful, efficient businesses at the heart of their communities across the UK. The Budget delivers a huge additional cost into every pub business, with a doubling of the business rates they currently pay in England, and a sharp rise in the employment taxes they will pay.
“Our recent survey revealed that these changes will leave 80% of pubs unprofitable, leading to a real risk of 1-in-4 having to close if they do not get further support. A busy pub does not mean a profitable business in the current climate.”
Mr Stafford vowed to take the fight to Parliament: “I won’t stand by and let Labour destroy our pubs. I’m calling on everyone in my constituency and beyond to join me. Go to my website, speak up, and help us stop this disaster before it’s too late.”