Suffolk groups Adnams and Chestnut call for rates freeze

As Jeremy Hunt's Autumn Statement of November 22 approaches, they are calling on him to relieve their burden and stem the tide of pub closures with tax breaks and support.

They would like to see action on taxes such as business rates and VAT to help them.

Andy Wood, chief executive of Southwold-based pubs and brewery group Adnams, called on the chancellor to offer "promise and optimism" to the hospitality sector.

"There are clear ways in which that can be done. Our hope would be that the chancellor will move to extend the current business rates relief, and freeze the current multiplier," he said.

“At the same time, we urgently need a reconsideration on VAT. To reduce VAT for our sector would be extremely encouraging to those who are currently spending their days worrying whether their venue will be the next to become a statistic in early 2024.”

Research from UK Hospitality suggests the country has seen the number of licensed premises fall below 100,000 for the first time as 44,000 pubs, restaurants and bars  shut compared to two decades ago - a drop of 30%.

The British Beer and Pub Association issued forecast that up to 750 pubs might be forced to shut for good in the first half of 2024 as a result of rising costs.

Philip Turner - who heads up the Chestnut Group which owns and runs pubs across East Anglia - said ideally he hoped for action on both VAT and rates but felt less optimistic of any movement on VAT.

"Clearly with the licensed sector there's angst," he said. He added: "It's an incredibly important part of the economy."

With the cost of labour rising steeply and discretionary spend shrinking, he felt that the industry would really start to feel the pain in the New Year.

Many were "deeply concerned" that having got through December - one of hospitality's peak months - they would then "meet a cliff" in January, he said.

"You do whatever you do to continue trading profitably. I think we are going to see quite a lot of assets going on the market in three or six months," he predicted.

Mr Wood said pubs played a "huge" role in the Suffolk community, and warned that further losses would be very upsetting for the towns, villages and neighbourhoods which depend on them for their social life.

“It’s all too easy to underestimate how much our hospitality venues mean to people – particularly in a rural part of the world like East Anglia,” he said.

“Our pubs are now being used as gathering places for all sorts of clubs and hubs, and they provide resources and solutions and safe spaces which support the mental health and wellbeing of our friends and family.

“I’m very hopeful the government will seize the opportunity to make the Autumn Statement count and to create much needed positivity for the sector.”