BII urges the Prime Minister to back our pubs and they will deliver in every community

A fair tax deal would unlock investment and jobs, while further tax rises could put two in five pubs at risk of closure.

The British Institute of Innkeeping (BII) has written to the Prime Minister and Chancellor ahead of the Budget, urging them to put 10% VAT on all pub sales at the heart of a fair tax deal. Its latest member survey shows what publicans could do with that support: 75% would invest in their pubs, 62% would increase staff hours and grow their teams, and half would spend more with local suppliers. Yet only one in four members reported making a profit between January and August. One in five expect to close if the current cumulative tax burden remains; that rises to two in five if taxes increase again.

Steve Alton, CEO of the BII, said:

“Our members are ready to invest. They want to develop their pubs, grow their teams and spend more with the local businesses that supply them. Give them a fair tax deal and that investment will reach communities across the UK.

But even after a strong summer for trade, too many publicans have little profit to show for the long hours they put in. Staff costs, energy bills and unfair cumulative taxation are undermining businesses that communities depend on. Around 40p in every £1 spent in a pub now goes to the Treasury. That is holding back the very investment, employment and growth that the Government wants to see.

The warning in our survey is stark. If taxes rise again, two in five of our members expect to close. These are people running good, long-standing pubs. Losing them would mean lost vital local jobs, support for local suppliers and places that bring people together in their communities.

Prime Minister, Chancellor: use this Budget to give pubs a fair deal, with 10% VAT on all pub sales at its heart. Back our publicans and they will deliver in every postcode. Tax them harder and thousands of communities could lose their pub.”

Notes to the editor:

About the British Institute of Innkeeping:

The BII is the leading independent licensee support organisation for individuals working in hospitality, with 13,500 individual members running premises across the UK - predominantly tenanted, leased, managed and freehold pubs. The organisation provides expert helplines, online business support, and guidance on key industry issues, and savings on a range of supply deals for its members, keeping pubs thriving in the heart of every community.

For further information please contact BII Marketing Team via marketing@bii.org.

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