Tories warn pubs in Blackpool could close if forced to pay thousands of pounds extra for wages and rates
Pubs in Blackpool could close and drinkers could see the cost of a pint rise due to extra government taxes, the Conservatives have warned.
The party says its research shows a reduction in business rate relief for the retail, hospitality and leisure sector, while increasing employers’ National Insurance contributions will add on average £6,714 to landlords’ bill from this April.
They warn around 110 pubs in Blackpool are facing the extra payments branded a ‘pub tax’ by the Tories.
Kevin Hollinrake, Shadow Communities Secretary, said: “First the Labour Government came for pensioners, then they came for the farmers, then they came for small businesses and now they’re coming for your local pub. Labour’s war on pubs will load tens of thousands of extra costs onto pubs, raise the price of a pint, put jobs in jeopardy and put our pubs at risk of closure.”
Blackpool businessman Robert Wynne, who owns the Rose & Crown Pub on Corporation Street and the West Coast Rock Cafe on Abingdon Street said he believed the figures had ‘underestimated’ the impact on pubs.
Following the Covid pandemic, a 75 per cent business rates relief was introduced, which will be replaced by a discount of 40 per cent, up to a maximum of £110,000.
Meanwhile Robert warned the rise in national insurance ” is likely to add around £2000 to costs for a smallish pub”, and the increase in the minimum wage will put six per cent on the payroll bill “probably £10,000 for a medium sized pub.”
He added: “It is a very price sensitive market, so it would be hard to just increase prices to cover that, but that will have to happen. Also you will see pubs and similar businesses looking to reduce staff hours wherever possible and even close at marginal times.
“I think it is going to be a difficult year. As always the message is that if you enjoy British pub culture then please support them.”
Blackpool South Labour MP Chris Webb said pubs played a vital role in communites but added the idea of a pub tax was 'misrepresentation' by the Conservatives.
He said: "As the chair of the All Party Parliamentary Group (APPG) for Tourism and Hospitality and as a member of the APPG for the night time economy, I have been advocating in parliament and working with the industry to ensure that local businesses in the sectors receive the necessary support to thrive.
"This includes pushing for targeted relief and ensuring that the businesses have access to the resources they need to navigate financial adjustments. I have been lobbying the treasury for a VAT reduction for hospitality and tourism businesses and, in the coming weeks, have a meeting with treasury to discuss this further.
"The government is committed to revitalising local economies and ensuring that places like Blackpool are vibrant and prosperous. Additionally, it recognises the impact of rising costs on employers and is working collaboratively with local councils and stakeholders to explore solutions tailored to the unique needs of our communities.
"I am committed to supporting our local pubs and will continue to fight for policies that help them not just survive, but thrive."