Pub owner 'dreading the future' as costs rise

Pub owners are warning that the hospitality industry is at risk of collapse without greater support from a government they say is "not listening at all".

Maria Gooding, who has run The Black Star in Stourport-on-Severn, Worcestershire with her husband for 12 years, said she was considering staff cuts and price rises because of rising costs.

She is one of 500 hospitality businesses that have joined the Hands Off Our Pubs (HOOP) campaign in a month, calling for a reduction in business rates for venues "under intense financial pressure".

A Treasury spokesperson said: "We are backing Britain's pubs, cutting their new business rates bills by 15%."

The government recently announced a three-year rescue package for pubs, which it said would be worth £1,650 for the average pub in 2026-27.

But, Gooding said, rates were still too high.

"Twelve years ago, we paid £18,000, but we're now looking at £35,000 a year," she explained, "and it's going to have a massive impact on the business.

"I'm dreading the next 12 months and I'm dreading finding out in April what our actual rates are going to be."

She accused the government of "not listening," describing the reduction as a "sticking plaster".

"We need more action," she said, warning: "The hospitality industry is not going to survive."

Jonathan Kaye has run The Prince of Wales in Ledbury, Herefordshire, for three years.

He made £6,000 in profit on a turnover of £460,000 last year.

"The only way I can turn a profit is to effectively not pay myself," he explained.

"Over the last three years we've been here we've realised the pub industry is in trouble."

The two publicans are among those who have joined the HOOP campaign to offer real-time support to those under financial pressure - and lobby government for more help.

Co-founder Mark Terry-Lush said: "Most consumers have no idea how many new costs are being piled onto hospitality.

"Business rates, an alcohol duty hike, higher employment and environmental taxes, rising energy bills and food inflation are all landing at once - forcing prices up while margins collapse."

The British Beer and Pub Association estimates that a pub makes an average of just 12p for each £4.80 pint of beer, once government taxes, the wholesale cost of beer, staff wages, utilities and other costs have been factored in.

A HOOP summit is taking place in the Forest of Dean, Gloucestershire, on Wednesday, to address the challenges in the industry and agree on next steps.

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