More than 9k pubs risk going bust in a YEAR unless Chancellor reverses booze tax, shock poll finds
MORE than 9,000 British pubs are at risk of going bust within a year, a shocking new poll shows.
The survey found one in five boozers believes it is unlikely to survive the next 12 months unless the Chancellor reverses last year’s brutal tax hike on spirits.
Pub bosses argue the tax cut for draught beer has been a total flop, with only 4 per cent saying it provided any meaningful support.
They are now urging Rachel Reeves to scrap the 10.1 per cent duty hike on spirits at the Budget, which they claim has not only hit pubs and distillers hard but has also cost the Treasury £298 million in lost revenue.
The poll of more than 200 pubs by Survation for the UK Spirits Alliance (UKSA) also found 89 per cent of pub owners have seen boozers in their area close in the last six months.
Another 58 per cent fear a negative outlook for their own business in the next year and 53 per cent say spirits generate a higher profit margin than other drinks.
Megha Khanna, owner of the Gladstone Arms in London, warned: “By choosing to support only beer and cider makers while raising taxes on other products, the previous Government damaged our pubs and bars and targeted those consumers who choose to enjoy a cocktail, gin and tonic or spritz.
“The Chancellor can back pubs, and the fantastic spirits makers that supply them, by reversing the disastrous decision by the last Government to hike duty by 10.1 per cent, which heaped pressure on pubs, slammed the breaks on the gin-boom, and ramped up inflation.”
Founder of Westminster-based Tamesis Dock Neema Rai added: “This is a sector we should be proud of and invest in. Reversing the last duty increase now at a time of economic hardship is a win-win situation for the Chancellor and businesses alike.”
A Treasury spokesperson said: “Thriving pubs are often at the heart of our communities and play a vital role in supporting economic growth across the UK. That’s why it is important for us to act on the challenges that they face, including through our national growth mission.
“Business is at the heart of that mission, which is why we have pledged to cap corporation tax at 25 per cent, make the business rates system fairer, and publish a business tax roadmap so that future investments can be planned with confidence.”