Kent pubs voice fears over budget

Landlords worry they can lose additional support like business rate relief.   Finn Macdiarmid reports.

Transcript

00:00The classic British boozer darts, football and of course the pint, but those who enjoy

00:04a quick one might be looking to the future, just in case their local has to close up shop.

00:11Labour are set to announce their first budget in 14 years tomorrow, and the Treasury have

00:15pledged to make business rates systems fairer. But plenty of pubs around the country are

00:19worried for the effect it could have on their profits, with the main concern being around

00:23government support being taken away.

00:25The business rates relief system was introduced for pubs after the pandemic, and it's currently

00:30set to run out next April. Losing this support could add more costs onto businesses that

00:35serve alcohol, all the way from large chains to small locals.

00:39With 75% having been taken off their business rates to a maximum of £110,000, it's understandable

00:45why some businesses are cautious.

00:47Well, pubs and small retailers are, and small businesses generally, are the least able to

00:52absorb inflationary costs, and one of the great problems we have with all governments

00:57is we never get a joined up focus on the cumulative impact of all the policies that they have

01:03on small businesses. Small businesses just are not able to absorb all these costs, and

01:09we need to ensure that this sector thrives, survives, and that we've all got the ability

01:14to continue to invest.

01:16To get a sense of what the effect could be on the small local pub, I went down to the

01:20Mackland Arms in Raynham to ask the owner Simon about what he thinks ahead of the budget.

01:24I've done a quick bit of math, and if the business rate relief goes, that will cost

01:31me £2,000 a year. I'm on the cusp of small business rate relief, so if that was to be

01:40nice enough to rise, it might actually drop, it could drop, but potentially I'm looking

01:44at a rise of an increase of about £2,000 a year, and obviously a lot of the bigger

01:49operators are going to suffer a lot more.

01:52The thing that Simon loves the most about running a pub are the people, but he tells

01:57me that with the upcoming budget he's just not sure what financial issues will come.

02:02He could potentially have nothing, or there could be an extra £2,000 added to his overhead

02:07costs. He just isn't sure, and it's that uncertainty that's a tough pill to swallow.

02:13A spokesperson with the government's Treasury Department said we're supporting businesses

02:16like our well-loved pubs through pledges to make the business rate system fairer, cap

02:21corporation tax at 25%, and to publish a corporate tax roadmap so they have some welcome certainty

02:27to plan for the future.

02:29So while the Mackland arms and customers aren't worried at the moment, ale houses, cocktail

02:34bars, nightclubs, taverns and anywhere that serves alcohol will be holding their breath

02:38ahead of the budget and what it could mean for their livelihoods.

02:41Finn McDermid for KMTV in Raynham.