Latest news with #EmmaMcClarkin
Scottish Sun
4 days ago
- Business
- Scottish Sun
Pubs in crisis after tax hikes and wage increases cost each boozer £14k EXTRA
It comes amid warnings that rising costs would push the average price of a pint above £5 BITTER FOR PUBS Pubs in crisis after tax hikes and wage increases cost each boozer £14k EXTRA Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) PUBS are facing a crisis as tax hikes and increases to wages leave each one facing £14,000 in extra costs. A jump in National Insurance (NI), the minimum wage, business rates and packaging taxes are costing the equivalent of 12 days' sales, the British Beer and Pub Association says. Sign up for Scottish Sun newsletter Sign up 1 Pubs are facing a crisis as tax hikes and increases to wages leave each one facing £14,000 in extra costs (stock picture) Credit: Alamy Boss Emma McClarkin called the situation 'indefensible' and urged immediate Government action. It comes after the BBPA warned that rising costs would push the average price of a pint above £5. The organisation reckons they would add 21p as boozers are forced to pass on some of the inflationary pressure to customers. Employer NI contributions rose from 13.8 to 15 per cent in April while the payment threshold dropped from £9,100 to just £500. The National Living Wage jumped from £11.44 to £12.21 per hour. These changes have seen insolvencies jump, with 67 pubs closing in April — the highest monthly figure since July 2024, according to accountancy firm Price Bailey. Meanwhile, 8,156 (21 per cent) of UK pubs are barely staying afloat. Matt Howard, head of insolvency at Price Bailey, said: 'The early signs are that the tax and minimum wage hikes which took effect in April are already tipping some struggling pubs over the edge.' A Government spokesman said: 'We are a pro-business government.' RATES 'FREEZE' What is the Bank of England base rate and how does it affect me? INTEREST rates are expected to stay at 4.25 per cent after inflation rose in April, economists predict. Most believe the Bank of England's Monetary Policy Committee (MPC) will keep rates unchanged on Thursday. Since last August, the MPC has gradually reduced rates from a peak of 5.25 per cent. But inflation jumped to 3.5 per cent in April, later corrected to 3.4 due to data errors. METRO BOOST SHARES in Metro Bank have jumped by more than a tenth as investors welcome reports the high street lender had attracted a takeover approach from a possible buyer. The London-listed bank was approached by investment firm Pollen Street Capital about taking it private. The discussions are said to be in early stages. Metro had a £925million rescue deal in 2023 and returned to profitability last year. GREAT ESCAPES GO UNDER TRAVEL firm Great Little Escapes has collapsed, leaving customers with axed holidays and uncertainty over refunds. The Berkshire-based company, which also operated under the names Your Holidays and Tunisia First, ceased trading as an ATOL holder on Friday. The Civil Aviation Authority issued a statement which said: 'We are currently gathering information from the company and will provide updates as soon as possible.' Customers have been advised not to submit claims yet, as they will not be processed at this time. Unlock even more award-winning articles as The Sun launches brand new membership programme - Sun Club.
The Sun
4 days ago
- Business
- The Sun
Pubs in crisis after tax hikes and wage increases cost each boozer £14k EXTRA
PUBS are facing a crisis as tax hikes and increases to wages leave each one facing £14,000 in extra costs. A jump in National Insurance (NI), the minimum wage, business rates and packaging taxes are costing the equivalent of 12 days' sales, the British Beer and Pub Association says. 1 Boss Emma McClarkin called the situation 'indefensible' and urged immediate Government action. It comes after the BBPA warned that rising costs would push the average price of a pint above £5. The organisation reckons they would add 21p as boozers are forced to pass on some of the inflationary pressure to customers. Employer NI contributions rose from 13.8 to 15 per cent in April while the payment threshold dropped from £9,100 to just £500. The National Living Wage jumped from £11.44 to £12.21 per hour. These changes have seen insolvencies jump, with 67 pubs closing in April — the highest monthly figure since July 2024, according to accountancy firm Price Bailey. Meanwhile, 8,156 (21 per cent) of UK pubs are barely staying afloat. Matt Howard, head of insolvency at Price Bailey, said: 'The early signs are that the tax and minimum wage hikes which took effect in April are already tipping some struggling pubs over the edge.' A Government spokesman said: 'We are a pro-business government.' RATES 'FREEZE' What is the Bank of England base rate and how does it affect me? INTEREST rates are expected to stay at 4.25 per cent after inflation rose in April, economists predict. Most believe the Bank of England's Monetary Policy Committee (MPC) will keep rates unchanged on Thursday. Since last August, the MPC has gradually reduced rates from a peak of 5.25 per cent. But inflation jumped to 3.5 per cent in April, later corrected to 3.4 due to data errors. METRO BOOST SHARES in Metro Bank have jumped by more than a tenth as investors welcome reports the high street lender had attracted a takeover approach from a possible buyer. The London-listed bank was approached by investment firm Pollen Street Capital about taking it private. The discussions are said to be in early stages. Metro had a £925million rescue deal in 2023 and returned to profitability last year. GREAT ESCAPES GO UNDER TRAVEL firm Great Little Escapes has collapsed, leaving customers with axed holidays and uncertainty over refunds. The Berkshire-based company, which also operated under the names Your Holidays and Tunisia First, ceased trading as an ATOL holder on Friday. The Civil Aviation Authority issued a statement which said: 'We are currently gathering information from the company and will provide updates as soon as possible.' Customers have been advised not to submit claims yet, as they will not be processed at this time.
Yahoo
5 days ago
- Business
- Yahoo
Tax and labour increases costing average pub £14,000, says industry body
Tax increases and the rise in the minimum wage have cost each UK pub about £14,000 on average, according to the latest figures. The impact of rises in national insurance contributions, the national minimum wage, business rates for some companies and packaging taxes have wiped out the equivalent of 12 days of pubs' turnover, the British Beer and Pub Association (BBPA) said. Emma McClarkin, boss of the trade body, said the hit was 'indefensible' and called for immediate action to help support the future of the sector. It has urged the Government to overhaul the current business rates system of property tax in order to help offset recent cost increases. The Labour Government has said it plans to reform the current business rates system, and in March said it will publish an interim report on this during the summer. However, in April's budget, the Government cut a relief on the property tax – that came in following the Covid pandemic – from 75% to 40%, resulting in significantly higher bills for hospitality, retail and leisure businesses. The BPPA has called on the Government to speed up reforms of the commercial property tax to alleviate pressure on pubs. The organisation warned earlier this year that the average price of a pint of beer would surge past £5 for the first time because of the cost hikes hitting the sector. It said the average cost of a pint in the UK was expected to rise by about 21p as a result as pubs are forced to pass some cost inflation onto customers. Ms McClarkin, chief executive of the BBPA, said: 'Pubs are effectively having to run on empty for nearly a fortnight which is indefensible considering how vital they are to communities, livelihoods, and the economy. 'We support Labour's ambitions to unlock the UK's potential but, to do that, they must make practical, meaningful changes that support pubs and the jobs that rely on them. 'We are not asking for special treatment — we ask only for fairness. 'We want a modernised, business rates system that supports, not punishes, pubs; Government to mitigate employment cost rises; and a review of the nonsensical and unfair EPR (extended producer responsibility) system.'
The Independent
5 days ago
- Business
- The Independent
Tax and labour increases costing average pub £14,000, says industry body
Tax increases and the rise in the minimum wage have cost each UK pub about £14,000 on average, according to the latest figures. The impact of rises in national insurance contributions, the national minimum wage, business rates for some companies and packaging taxes have wiped out the equivalent of 12 days of pubs' turnover, the British Beer and Pub Association (BBPA) said. Emma McClarkin, boss of the trade body, said the hit was 'indefensible' and called for immediate action to help support the future of the sector. It has urged the Government to overhaul the current business rates system of property tax in order to help offset recent cost increases. The Labour Government has said it plans to reform the current business rates system, and in March said it will publish an interim report on this during the summer. However, in April's budget, the Government cut a relief on the property tax – that came in following the Covid pandemic – from 75% to 40%, resulting in significantly higher bills for hospitality, retail and leisure businesses. The BPPA has called on the Government to speed up reforms of the commercial property tax to alleviate pressure on pubs. The organisation warned earlier this year that the average price of a pint of beer would surge past £5 for the first time because of the cost hikes hitting the sector. It said the average cost of a pint in the UK was expected to rise by about 21p as a result as pubs are forced to pass some cost inflation onto customers. Ms McClarkin, chief executive of the BBPA, said: 'Pubs are effectively having to run on empty for nearly a fortnight which is indefensible considering how vital they are to communities, livelihoods, and the economy. 'We support Labour's ambitions to unlock the UK's potential but, to do that, they must make practical, meaningful changes that support pubs and the jobs that rely on them. 'We are not asking for special treatment — we ask only for fairness. 'We want a modernised, business rates system that supports, not punishes, pubs; Government to mitigate employment cost rises; and a review of the nonsensical and unfair EPR (extended producer responsibility) system.'
Yahoo
5 days ago
- Business
- Yahoo
Tax and labour increases costing average pub £14,000, says industry body
Tax increases and the rise in the minimum wage have cost each UK pub about £14,000 on average, according to the latest figures. The impact of rises in national insurance contributions, the national minimum wage, business rates for some companies and packaging taxes have wiped out the equivalent of 12 days of pubs' turnover, the British Beer and Pub Association (BBPA) said. Emma McClarkin, boss of the trade body, said the hit was 'indefensible' and called for immediate action to help support the future of the sector. It has urged the Government to overhaul the current business rates system of property tax in order to help offset recent cost increases. The Labour Government has said it plans to reform the current business rates system, and in March said it will publish an interim report on this during the summer. However, in April's budget, the Government cut a relief on the property tax – that came in following the Covid pandemic – from 75% to 40%, resulting in significantly higher bills for hospitality, retail and leisure businesses. The BPPA has called on the Government to speed up reforms of the commercial property tax to alleviate pressure on pubs. The organisation warned earlier this year that the average price of a pint of beer would surge past £5 for the first time because of the cost hikes hitting the sector. It said the average cost of a pint in the UK was expected to rise by about 21p as a result as pubs are forced to pass some cost inflation onto customers. Ms McClarkin, chief executive of the BBPA, said: 'Pubs are effectively having to run on empty for nearly a fortnight which is indefensible considering how vital they are to communities, livelihoods, and the economy. 'We support Labour's ambitions to unlock the UK's potential but, to do that, they must make practical, meaningful changes that support pubs and the jobs that rely on them. 'We are not asking for special treatment — we ask only for fairness. 'We want a modernised, business rates system that supports, not punishes, pubs; Government to mitigate employment cost rises; and a review of the nonsensical and unfair EPR (extended producer responsibility) system.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
