Pubs face closure without Budget help, says industry giant

Published On Oct 24, 2024, 5:48 AM

The UK's hospitality sector, particularly pubs, is at risk of widespread closures if the government does not extend business rates relief in the upcoming Budget. Stonegate Group's CEO David McDowall highlighted that current profit margins are extremely low, with landlords earning only 12p profit per pint sold. Business rates relief, initially introduced during the pandemic, is set to expire in April, leading to potentially quadrupled rates for many small pubs. This could exacerbate ongoing challenges such as high inflation, energy costs, and reduced customer spending due to the cost of living crisis. Industry groups have urged the Chancellor to extend the relief and reform business rates to prevent further financial damages.