Pub landlord Kate Stewart has stated that Rachel Reeves's recent Budget will lead to further closures in the British pub industry, calling it the "final nail in the coffin" for hospitality. Stewart explained that pubs are already struggling with slim profit margins, often making only 12 pence per pint, and are now facing unsustainable costs due to a 3.6 percent increase in duty, rising energy prices, and an increased National Living Wage. She believes that both the 2024 Budget and the latest statement have severely impacted her business, leading to a downturn in customers as people's drinking habits change and community hubs like pubs are less frequented.
Stewart further elaborated that to cope with these added expenses, pubs are being forced to lay off staff, exacerbating job losses in a sector that contributes £26 billion annually to the UK economy and employs hundreds of thousands of people, including young and low-skilled workers. She fears that pubs have no chance of recovery from these pressures and are being treated as a "cash cow" by the government, with 30 percent already at risk of insolvency before the new Budget was announced.
