Reform is 'streets ahead' on pubs, says Wetherspoon boss as one in eight teeters on brink of collapse

The boss of Wetherspoon has backed Reform's plan to save Britain's pubs amid warnings that one in eight is now in 'severe financial distress' and could go bust. Sir Tim Martin threw his weight behind Nigel Farage's pledge to cut VAT in the hospitality sector to 10 per cent and reduce beer duty by 10 per cent while also reversing the recent rise in employers' national insurance contributions (NICs) for the industry and a gradual removal of business rates for all pubs.Sir Tim told investors and industry leaders in a lengthy stock exchange filing on Monday that 'there's no question that this initiative would utterly transform the competitiveness of pubs'.The comments came as accountancy firm Price Bailey said there has been a stark increase in the number of pubs at immediate risk of insolvency since a year ago.The figure stood at one in 10 last year but firms have struggled with higher costs of National Insurance contributions for employers and wages.The figures will compound concerns of further closures and job losses just weeks  after Labour was forced to back track on a planned business rates hike for pubs and music venues.The Chancellor last month announced a 15 per cent discount on pubs’ rates bills after a furious reaction following increases revealed after the last Budget. Nigel Farage's plan to save Britain's pubs has won the backing of Sir Tim Martin Around 1,500 publicans banned Labour MPs from their premises following the discovery - after Rachel Reeves had pledged to help the sector.But Price Bailey said its analysis - of the credit risk scores and balance sheets of all 38,126 pubs and bars in the UK - highlights pubs are still facing hard times despite the U-turn.Matt Howard, head of the insolvency and recovery team at Price Bailey, said that despite the new support, ‘the underlying picture remains unchanged.’He said: ‘Business rates were only one part of the pressure. Wage costs, tax rises, energy bills and inflation have been eroding margins for years.‘Although there was a surge in insolvencies after last April’s tax and wage rises, which has moderated somewhat in recent months, the balance sheet position of a growing proportion of pubs continues to deteriorate.’Many will face collapse over the next year even if they see strong trade, he warned.Sir Tim said he felt Reform was ‘streets ahead’ of other political parties when it came to helping the sector.He said: ‘By eliminating the tax differential between supermarkets and the hospitality industry, and restoring margins to devastated businesses, these changes would enable pubs to regain some, or all, of their lost trade.’And Sir Tim, who oversees more than 800 pubs and has long railed against the difference between supermarket and pub taxes, told The Mail: 'Although I campaigned in the referendum, I’ve stayed out of party politics for most of my life, albeit I’ve always commented specifically on issues which affect pubs.'He said he believes that 'in this case, Reform is streets ahead in its pubs policy’ but he was not commenting on its overall policies and would not say who he would vote for.His remarks echo that of Fuller’s boss Simon Emeny, who said at the weekend Reform offered a plan after what ‘has been probably the best part of 20 years of government failure towards pubs.’Emma McClarkin, chief executive of the British Beer and Pub Association, said: ‘With three out of four pubs now seeing a freeze or drop in their business rates bills, the government has put in place support which is much-needed and welcomed.‘However, pubs have historically faced punishing taxes and rates, which is why we'll be working with Government to establish a long-term plan on permanent business rates reform and reducing regulatory burden so they can remain at the heart of communities.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you Share or comment on this article: Reform is 'streets ahead' on pubs, says Wetherspoon boss as one in eight teeters on brink of collapse

View Original Article