Landlords of pubs in Cornwall concern over October Budget

Those working in the hospitality sector are calling on the Government to lessen the taxation of the pub and brewing sector to help them survive and continue to serve their communities.

The upcoming Budget on October 30 is described as a pivotal moment for those in the hospitality sector - and in particular pubs - with many holding on to the hope of some much-needed optimism and relief.

However, if the current 75% relief on business rates is removed, it will cost the average pub an additional £12,000 - which would have a hugely damaging impact on their financial viability, in an industry that has already seen mass closures over the past 18 months.

Possible increases in alcohol duty and business rates, together with a potential smoking ban in pub gardens, have also hit the headlines recently.

Now three pub landlords have shared their concern about the future of the industry if the Government fails to continue the existing rate relief, or bring in supportive measures.

Mark Holden

Mark Holden runs three St Austell Brewery pubs in Cornwall under the Inn Cornwall brand - The Victoria Inn in Roche, The Victoria Inn at Threemilestone, and The Norway Inn in Perranarworthal.

The landlord of 15 years said: “We’ve already had to adjust the price point of our beer three times in the last 18 months, and there are concerns about the energy crisis increasing further too.

“Add to that the beer duty increases, there’s only so much we can do with every impact which has come our way. Ultimately that cost goes onto the guest, but it’s too much too quick.”

Mark Holden, landlord of The Victoria Inn at Roche, The Victoria Inn at Threemilestone and The Norway Inn at Perranarworthal One of the most rewarding parts of the job for Mark is the training and career progression he and his team have been able to give local people, particularly through their apprenticeship scheme which has seen employees flourish and go on to run their own businesses, both inside and outside of hospitality.

He added: “The ideal Budget announcement would be to continue the discounted business rates. If that stayed, I would have confidence to further invest in our businesses, increase employment and potentially look at growth. Right now we don’t have confidence to do that.

“It’s relentless and exhausting having to navigate constant change. The UK business sector as a whole needs stability.”

Alex and Tanya Williams

Alex and Tanya Williams have run the Polgooth Inn near St Austell for almost 14 years and say they have never had it this hard – even during the financial crisis of 2008.

Tanya said: “Our takings are up this year, yet we are not benefitting from it because of extra costs like energy and the increase of wages. It doesn’t make sense that people are walking in and seeing a really busy pub - which is great - but for us we’re not making any money from it, and it’s an incredibly disheartening situation to be in.

“It’s everything – it’s the wages, the rates, the duty, we’re so nervous about what the future holds.”

The Poolgoth Inn near St Austell has been run by Alex and Tanya Williams for almost 14 years (Image: Polgooth Inn/TripAdvisor) The husband and wife duo, who employ around 48 people at the pub, added: “The situation is starting to get a lot of us down. We’ve been running pubs for this long we don’t want it to get the better of us.

“I love what pubs are at their core; they are community, good food, good beer. Pubs mean a lot to so many people and they are not recognized enough for what they bring. It would be really nice not to have to fight for our pubs to stay open and let us do what we’re good at.

“We need a reduced taxation to a level which can support us – the Government says it wants to, but then does the opposite.”

Dan Cocks

Dan Cocks, who took on the Edgcumbe Arms in Cremyll, on the Rame Peninsula, with partner Vicki this summer echoed much of Tanya and Mark’s concerns.

He said: “We got over Covid, then there were hikes in energy, and rapid increases in National Minimum Wage all of which has been extremely challenging and left us with no choice but to pass price rises to customers who are also already struggling. It’s been a difficult few years for industry, and there’s no secret how many pubs have closed.

“It’s extremely tough and we are already worried – we can work together as an industry and get through this, but we need the Government to listen help and work with the industry.

Dan Cocks took over the Edgcumbe Arms at Cremyll in the summer (Image: Edgcumbe Arms/TripAdvisor) “We’re already streamlining but the business won’t take much more. The situation doesn’t allow you to invest or progress but that’s what we need to do to drive our pubs to be sustainable and provide an essential service for people, but also to continue to create employment and contribute to the economy.

“Running a pub is all about the people – people come in and they want to unload their troubles and unwind after a day at work. It’s what we know and love, and we enjoy being part of a community – pubs are essential to communities.

“If the business rate relief goes, that’s the end. It will be the straw that breaks the camel’s back. It will simply lead to more pubs closing, more unemployment and a net loss for the economy.”

St Austell Brewery

St Austell Brewery’s chief executive Kevin Georgel also wants to see a cut in beer duty, business rates reform, along with a pledge to keep the 75% business rates relief to ensure that pubs can survive.

The chief executive of the business that runs more than 160 pubs across the south west said: “The time has come for the Government to finally recognise the enormous economic and social contribution that pubs make and act decisively to provide a level playing allowing them to continue to invest and create employment.

St Austell Brewery's chief executive Kevin Georgel (Image: St Austell Brewery) “Our sector supports more than a million jobs and pours billions into the UK economy every year. However, despite the huge economic and social value, taxes and rising business costs means pubs make just 12p of profit on an average pint of beer whereas tax is almost 13 times as much at £1.52 per pint (VAT 80p, beer duty 49p, other taxes 23p).

“Our industry can’t bear more punitive Government imposed burdens or taxation – and for many licensees, it would leave no alternative than to close the doors on these beloved institutions, which are both an integral part of our communities today and an invaluable part of our social and cultural heritage.”

He is also urging people to support their local pubs through the British Beer and Pub Association;s Long Live the Local campaign, which shines a light on the issues facing the industry and encourages people to show their solidarity for the sector through an online petition and writing to MPs to raise awareness of the issues pubs face.