Rachel Reeves savaged for driving pubs to the brink in ‘punishing tax raid’
Rachel Reeves is facing a fresh backlash from the hospitality sector after a leading pub boss accused the Chancellor of overseeing a “punishing” tax regime that is accelerating the closure of Britain’s pubs.
Simon Emeny, executive chairman of Fuller, Smith and Turner, said the industry had been subjected to “unprecedented interference” over the past decade, arguing that successive tax rises and regulatory changes were driving operators to the wall.
His intervention comes amid mounting pressure on the Government over the cost of doing business, with thousands of pubs having shut their doors in recent years and operators warning that margins remain under sustained strain.
Mr Emeny singled out a raft of Treasury measures, including increases in business rates, national insurance contributions and alcohol duty, which he said were fundamentally reshaping the economics of the pub trade.
“When I reflect on the changes seen in our sector over the past 10 years, it has been a period of unprecedented government interference, additional taxes and regulations,” he said.
He also criticised wider policy initiatives, including the apprenticeship levy, packaging reforms, green energy levies and the sugar tax, arguing that the cumulative burden was weighing heavily on investment and hiring decisions.
Employment law reforms were also in his sights, with warnings that changes under the Employment Rights Act could further increase costs and reduce flexibility in a sector heavily reliant on part-time and casual staff.
Pubs, he said, risked being forced to rethink their approach to recruitment, particularly in relation to younger workers and flexible shifts that underpin much of the industry’s operating model.
The criticism comes as Fuller’s reported a 13 per cent fall in pre-tax profits to £29.5 million, despite an increase in turnover to £398 million. The company said its tax bill rose to £8 million over the year, though it partially offset rising employment costs through efficiency gains.
While like-for-like sales remained positive — with drinks up 5.8 per cent, accommodation up 4.9 per cent and food up 3.5 per cent — the group warned that trading conditions remain fragile.
Fuller’s is continuing a £30 million investment programme across its estate, including recent refurbishments in central London, as it attempts to capitalise on stronger leisure demand during peak trading periods.
Looking ahead, Mr Emeny said bookings for the summer and major sporting events were encouraging, with demand for staycations and hospitality experiences providing some support to revenues.
But the wider message from the sector was markedly more downbeat: that rising costs, taxation and regulation are steadily eroding the viability of Britain’s traditional pub economy.
