In the run-up to the budget, Greg Pilley, Founder and Managing Director of Stroud Brewery, is calling for targeted action to safeguard the future of Britain’s pubs.
With pub closures occurring at a rate of at least one per day this year, he warns that without decisive intervention in the government’s Budget on 26th November, a vital part of the nation’s cultural and economic fabric will continue to erode.
“Pubs and hospitality businesses are being hit by a perfect storm of economic pressures,” Greg explains. “Many operators have already reached breaking point. But this situation is far from hopeless. With the right support from the Government in the forthcoming Budget, pubs, breweries and hospitality venues can stabilise, rebuild, and help drive local economic recovery.”
Over the past two years, a series of financial shocks has made the operating environment increasingly unsustainable. The increase in employers’ National Insurance contributions in April added approximately 10% to the cost of employing a member of staff. This came on top of a rise in the minimum wage – welcomed in principle but difficult to absorb simultaneously. Escalating energy prices have not only increased utility bills but have also pushed up the cost of food and raw materials. In April, business rates relief for hospitality fell from 75% to 40%, sharply increasing fixed overheads. Meanwhile, customers themselves are coping with cost-of-living pressures, meaning discretionary spending in pubs has fallen.
“Most customers don’t realise that for every £3 spent in a pub, £1 goes straight to the tax office,” says Greg. “At Stroud Brewery, we’ve had to generate around £250,000 in additional income each year to meet these increased costs.”
Beyond their economic role, pubs occupy a unique place in British life as cornerstones of community life and social fabric. Nearly three-quarters of adults believe pubs have a positive impact on their community and help combat loneliness. Recent national surveys consistently rank “the pub” and “British beer” alongside the most cherished British icons. For many towns and villages, the local pub remains a vital social space.
Greg, and many across the sector, is urging the Government to introduce several key measures in the 2025 Budget:
Business rates reform
A meaningful reduction in business rates for pubs, breweries, restaurants and bars is essential. The UK currently imposes the highest property taxes in Europe, with pubs paying up to four times more than comparable businesses. The Government has previously committed to a fairer system from 2026/27, including lower multipliers for high-street hospitality premises. The sector needs confirmation and early implementation of these reforms.
A review of Employers’ National Insurance contributions
Reducing NI rates for hospitality would immediately ease labour cost pressures and help safeguard jobs.
Increasing alcohol duty on packaged beer
Raising duty on supermarket beer would narrow the widening price gap between the costs of alcohol in shops compared to pubs, making the system fairer.
A 5% cut to VAT for hospitality
Many European nations have already taken this step, reducing VAT by 8–14% to support their hospitality sectors. The UK should follow suit.
Support with energy costs
High and volatile commercial energy bills remain a major burden. Targeted assistance or improved access to fair-value non-domestic tariffs would provide much-needed stability.
The beer and pub sector contributes £34.3 billion to the UK economy, supports one million jobs and generates £1.14 billion in tax revenue. It is also one of the country’s largest employers of young people, with 40% of pub workers aged 18–24.
“It’s not just about income generation: pubs enrich our communities, our society and our economy,” Greg concludes. “They deserve meaningful protection – from the grassroots right through to the highest levels of Government. I hope the Chancellor agrees.”
