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Rising costs for North East pubs threatens further turmoil

Pub Business Plan

Since the start of the 2008 recession, the pub trade has been under pressure to survive. Although the trade now appears to be stabilising, the pub industry are calling to the government for help. As the economy remains unsettled, people have less disposable income leading to staying at home rather than going out to socialise.

According to the British Beer and Pub Association, beer tax has increased by 35 percent since 2008. The latest tax increase could push the figure to 42 percent, leading to fears that a further 16,000 jobs could be lost. The BBPA is campaigning for help in the Budget. The chief executive of BBPA, Brigid Simmonds said:

“We need policies that support pubs and to put an end to those totally unsustainable tax rises. We need a tax policy that creates vital jobs for young people, at a time when this should be the Government’s top priority.”

A spokesman for the government acknowledged that the pub industry made a valuable contribution to the UK economy, and pointed out that a number of tax measures have been introduced to help the industry. If pubs employ people who earn less than £21,000, reduced National Insurance Contributions for employers will cut costs. Corporation Tax reductions and the extension to the relief holiday for small business rates are other measures.

However, recent data shows that trade is levelling which is positive news for the pub industry. A small accountants will ensure that all relevant tax measures are implemented in the financial strategy for the business, to maximise profits.

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