Only one-in-three British pubs turn a profit, LBC reveals, as alcohol duties and NI increase leave locals struggling to stay open
In a survey of 205 pubs, only one in three said they have turned a profit in the wake of last year’s autumn Budget
Only one in three British pubs is profitable thanks to policies adopted in Labour’s 2024 Budget, LBC has been told.
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Exclusive polling by the British Institute of Innkeeping (BII) has revealed Employer National Insurance, the rise in minimum wage and sky-high alcohol duties have left pubs across the UK struggling for profit.
In a survey of 205 pubs, only one in three said they have turned a profit in the wake of last year’s autumn Budget.
As a result of Labour’s tax hikes, 90% of responders say they have been forced to increase drinks prices, 80% have cut staff hours and 45% have changed their opening hours.
Speaking to LBC, the BII said: “Pubs are local businesses at the heart of their communities, and all our members are working people who are simply not being backed by Government.
“They promised support, and have instead added more tax and costs, undermining pubs in every community, and the scale of the impact from the wage rises and the business rates increases is in the thousands for these small, essential businesses, threatening their very existence.”
These numbers come after LBC and the Taxpayers Alliance revealed struggling locals are forking out eye-watering sums to the taxman.
They found that taxes account for 28 per cent of the average pint, and 29 per cent of the average glass of wine.
When the taxes on beer, wine and spirits are totted up for the average pub, it comes to taxes of £96,140.
And they say if the cost of a pint of beer had risen in line with RPI inflation since 1989, it would be £1.14 less on average, than we're paying now.
That works out at around £200 more a year for the average punter.
Alcohol duty has been frozen on and off over the last few years, but Britain has some of the highest duty rates in Europe.
The Taxpayers' Alliance also say that pubs are being hammered at every angle - with the average business rates bill set to rise from £3,938 to £9,451 this year, thanks to Covid-relief ending.
There are plans to introduce a permanently reduced rate in 2026-27 for hospitality firms, but pubs still waiting for clarification on what that will mean and how much they will pay.
The impact of the National Insurance rise on employers is also impacting hiring decisions.
They say that the average cost of hiring a full-time employee on the minimum wage is more than £2,300 more expensive than last year's budget.