Pub bosses ‘to march on Westminster’ in protest over tax - but they can’t afford to shut their doors for strikes
Pub bosses are set to march on Whitehall to demand the government reverses plans to hike business rates for landlords.
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Andy Lennox, the landlord who spearheaded the campaign to ban Labour MPs from pubs across the country, told LBC there will be a day of coordinated action on January 30th.
It's believed pubs are also considering shutting their doors to patrons for an hour on the day as part of the protest.
“We’re definitely pushing down the farmer route”, Mr Lennox said, citing the sustained pressure that led to the government’s u-turn on inheritance tax on agricultural properties, adding that pub owners would not back down until they see a similar concession on business rates.
The prime minister has indicated that the government is looking at “further measures” to help offset these costs.
The industrial action could involve pub owners marching on Westminster, as well as a coordinated information campaign in pubs themselves, drawing customers’ attention to the financial pressure they are facing, and will be backed by industries bodies.
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At this stage, pubs are not planning on closing their doors for the day owing to cost pressures.
Speaking to LBC’s Nick Ferrari, Mr Lennox said: “All the trade bodies and a lot of the bigger organisations are now starting to organise for proper industrial action… There's a protest planned for the end of the month, and we're looking into some major kind of industrial action now.”
In November, the Chancellor unveiled a series of measures that are likely to hit publicans’ bottom lines.
Many landlords are set to see their business rates more than double at a time where the sector faces a host of additional costs - including an increase to the minimum wage and employer national insurance.
As well as ending the pandemic-era business rates relief scheme, which had already been reduced from 75% to 40%, Rachel Reeves also announced a revaluation of the relatable values paid by pubs, restaurants and bars.
Celebrity chef Tom Kerridge told LBC’s Tom Swarbrick that this meant rates for his 'Coach' restaurant were set to rise from £50,500 to £106,000; meanwhile, some village pubs will be drawn into paying business rates for the time.
Independent MP Rupert Lowe has called the British pub “a crucial part of British culture”.
He told LBC”s Tom Swarbrick: “It glues the communities together, it means people meet up and you know they're going to be very badly affected by this business rate revaluation.”
Mr Lowe said he is all in favour of pubs banning Labour MPs, saying: "Yes, I'm all in favour of that, because I don't think these Labour people listen."
He has called on Labour to U-turn on the business rate revaluations, calling them "just unsustainable".
Earlier this week, Sir Keir Starmer told LBC that the government is looking at introducing “further support” for embattled pubs.
Sir Keir said: “Obviously, what's happened is there were reductions in place during COVID, which were always going to be unwound… I accept that because of revaluation, that means that some will have their bills going up.
“We want to talk to the sector. I want to keep working with them to make sure we can work this through… whether that’s on licensing freedoms or other measures.”
However, it appears that landlords have not been placated.
The day of action will call for measures to alleviate the pressures on pub owners, including increasing business rate relief from 5% to 13% and reducing VAT on hospitality to a similar level to many European countries.
Last year, a pub shut its doors for good every day in Britain, adding to the more than 2,000 that have closed in the last five years.
Nigel Farage, the Leader of Reform UK, also weighed in on the challenges facing the sector, telling LBC's Natasha Clark: "Clearly the business rate thing is the absolute urgent priority, [but] everything this government has done has hit pubs.
"You've seen very big percentage increases in the minimum wage, the reduction to £5,000 a year that people as employers have to start paying National Insurance. Many work for a few hours a week... [and] they have been dragged in."
A Treasury Spokesperson said: “We’re protecting pubs, restaurants and cafés with the Budget’s £4.3 billion support package. Without this support, pubs would face a 45% increase in the total bills they pay next year, instead this package gets that down to just 4%.
"This comes on top of our efforts to ease licensing to help more venues offer pavement drinks and put on one-off events, maintaining our cut to alcohol duty on draught pints, and capping Corporation Tax.”