Worcester landlord urges government to cut tax for hospitality

A publican has revealed his anguish at having to close down, saying he has been "crippled" by rising costs and a decline in customer drinking habits.

Jon Dean, who ran The Alma Tavern in Worcester for the last seven years before closing its doors this week, has urged the government to consider new tax cuts for hospitality venues or face more pubs going under.

He said: "We employed 14 or 15 people here but we've had to let everyone go. It's a bitter pill to swallow."

A spokesperson for the Treasury said pubs "were already benefitting from a 20% cut in business rates", with Prime Minister Andy Burnham previously calling it "the first step" to help the industry .

Dean, who also lives above the pub, is having to find a new home after opting to hand the business back to the brewery, Star Pubs.

"We've been trying to keep it going but there's no light at the end of the tunnel," he said.

"Hospitality has taken a battering. We've had the utility crisis, the cost of living crisis [and] now the war in Iran.

"All of that has had an impact on prices, but when you add in employer's national insurance contributions, rocketing minimum wage, rocketing VAT, business rates, all of that pressure has crippled us."

Dean told the BBC that customers were not spending as much, something he put down to the cost of living pressures.

"People used to come in four or five times a week and they'd have four or five pints, but those days are gone," he said.

"Now we'd maybe see them once or twice a week and they might only have a drink or two - people just haven't got the money.

"I've tried everything to keep the pub going, but it's like flogging a dead horse."

Explaining the financial pressures, he said: "A place like this turns over maybe £800,000 a year, but once you've paid out your taxes, your energy bills, your wages, it's pretty much all gone.

"Taxation and the cost of everything is just far too high."

In July, the government cut business rates for pubs.

But last month, more than 800 businesses, including top UK chefs, wrote an open letter to the PM , saying there would be more pub and restaurant closures unless VAT was reduced.

Allen Simpson, chief executive of the trade body UKHospitality, said the tax burden for the sector had "grown disproportionately" in recent years.

"We have already seen promising signs from the new government in its approach to hospitality - I hope this [forthcoming] Budget will see further backing for the entire hospitality sector," he added.

A spokesperson for the Treasury said: "The chancellor has prioritised support for the hospitality industry in his first week in the job when he cut business rates by 20% for pubs, social clubs and live music venues, saving thousands of [pubs] over £1,000 a year.

"This is on top of providing a tax break on poured pints and capping corporation tax."

A spokesperson for Star Pubs said: "While Star Pubs owns The Alma Tavern, it is leased to an independent operator who runs it as their own business and has taken the decision to close the pub."

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