By Mark Andrews

Copyright expressandstar

The British Beer and Pubs Association (BBPA) warned the Government’s plan to end relief on business rates coupled with a forthcoming revaluation of commercial properties was creating a ‘perfect storm’ that could put more than 1,000 pub staff out of work.

BBPA chief executive Emma McClarkin called on the Chancellor to take urgent action to cut the closures.

The new figures come from a report by the Centre of Economic and Business Research, commissioned by the BBPA, which found more than 2,000 pubs – the equivalent of 12,000 jobs – could close in England next year.

The report found that if no further action was taken by the Government, business rates bills for pubs were expected to rise by more than 50 per cent, compounding already unsustainable cost pressures.

It said that last year, pubs and bars accounted for 0.4 per cent of total UK turnover, but paid 2.1 per cent of the country’s business rates. This meant that pubs were paying more than five times what they should be, costing the industry £507 million a year.

The report warned that if the Chancellor did not use the Autumn budget to reset and reform business rates, the the UK could lose 2,000 pubs which would be a ‘wrecking ball’ for the economy, and communities which relied on them.

It said in the West Midlands a total of 230 pubs were likely to close, costing an estimated 1,009 jobs.

The association called for Rachel Reeves to apply a reduction of 20p in the pound for pubs, cutting the number of pub closures by almost 40 per cent.

Mrs McClarkin said this would save about 5,400 jobs and generate nearly £100 million for the UK economy.

This, along with a cut in beer duty, mitigating employment costs and reviewing punishing packaging costs, were vital for the sector to remain a pillar of the economy, job market, and communities, she said.

“This scale of pub closures would be a wrecking ball for the economy, job market, and communities up and down the country,” she said.

“Government has a once-in-a-generation opportunity to reset a deeply unfair rates system and unlock growth in every part of the country through backing our pubs by cutting this crushing cost.

“The Chancellor can choose to save jobs, boost the economy and protect our much-loved pubs or oversee thousands of closures on her watch.

“Pubs are not just businesses; they are vital social and economic assets and to reset these rates would be a strategic investment in the UK.”

Mrs McClarkin urged Miss Reeves to seize this moment and create the pathway to sustainable business growth.

She said the Government already had the ‘tools’ to implement these reforms, so they would not cost anything to implement.

The trade association said business rates reform, along with a cut in beer duty, mitigating employment costs, and a review of eye-watering packaging costs, would not only help the sector survive, but boost the economy and job market.