On Tuesday, the Chancellor, Rachel Reeves, announced that pubs and music venues will receive a support package from next April, including a 15% discount on business rates and a two-year freeze on increases.
Marlborough’s pubs, like those in market towns across the country, are a key part of our local economy and community. As well as serving local customers and providing that place to get together with friends, enjoy a Sunday lunch or celebrate a special occasion, they also attract and serve visitors to our town.
The Government has said that the package aims to recognise the value of British pubs and the challenges they are facing, and that around 75% of pubs will see their business rates fall or stay the same.
The local pubs spoken to by Marlborough.news, however, all expressed that the measures won’t significantly help pubs facing increased costs.
Lousie Martin and Annaliese Hughes from The Marlborough told Marlborough.news that whilst the announcement is “an acknowledgment of the pressure pubs and hospitality businesses are under”, the average annual savings of £1650 which amount to £31 a week are “virtually insignificant in the broader picture of mounting financial pressures”.
Similarly, Iain Watson, landlord of The Bear, which alongside the pub offers a cafe, hotel and restaurant, said that the measures are not sufficient help and that The Bear will continue to face financial difficulties which could lead to closure.
Local pubs are being put under increasing pressure with rising wage costs, National Insurance contributions, energy bills, and supplier costs.
Pubs, however, are not the only hospitality businesses to see increased costs. Restaurants, cafes and hotels, which are not supported by the government’s package, are also facing increases in the same areas as pubs. Marlborough has recently lost two restaurants, Rick Stein and La Terraza, and the building previously used by Rick Stein remains empty to date.
Giuseppe Caruso, owner of Pino’s, commented that even busy restaurants such as his are finding business conditions challenging. He understands why the government wants to support pubs as a British cultural institution and supports the measures but warned that more restaurants will close without similar support.
Businesses need to counteract these rising costs somehow but, with customers feeling the squeeze as the cost of living rises, many are reluctant to put up prices. Simon Cocks, who owns The Lamb Inn, told Marlborough.news “We as publicans do not want to put prices up and charge what is going to be close to £7 a pint for some products to the working man and women who value the pub as a social hub.”.
Marlborough business owners agreed that wider support is needed for local hospitality as financial challenges faced extend far beyond business rates. As Lousie Martin and Annaliese Hughes put it, “What the sector really needs is a more joined-up, long-term approach: meaningful business rates reform, continued support for staffing and skills, and policies that recognise hospitality as a cornerstone of local economies and community life, not just a discretionary extra.”
Simon Cocks suggested that a cut to VAT could be the most beneficial measure for supporting hospitality, pointing out that in most of mainland Europe VAT is 10-15% compared to the UK’s 20%.
For Marlborough’s pubs, the support package might be a recognition of the problem, but not the long-term solution needed. As Simon Cocks said, “it’s more just putting a plaster over a wound and kicking the problem down the road for the next government to deal with.”.
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