Pubs face significant disparities in business rates compared to supermarkets, with Wetherspoons’ CEO, Tim Martin, highlighting the issue. Martin stated that pubs pay approximately 20 times more in business rates per pint of beer than supermarkets, resulting in a significant price difference. He explained that this tax discrepancy has led supermarkets to sell beer at a much lower price due to their lower overhead costs and the fact that they do not pay VAT on food sales, unlike pubs.
Martin expressed concerns that this tax inequality has caused pubs to lose a substantial portion of their beer trade to supermarkets over the years. He emphasized the negative impact on businesses, high streets, and the social aspect of communities, where pubs traditionally served as a place for people to socialize.
In response to the challenges faced by the pub industry, Greene King proposed revising business rates to be based on profits rather than current structures. However, Martin expressed reservations about this approach, suggesting that it may not be the most effective solution.
The Mirror’s campaign, “Your Pub Needs You,” advocates for government support for struggling pubs, recognition of pubs contributing to their communities, and assistance for community groups interested in purchasing local pubs. Data revealed a concerning trend of pub closures across Britain, with nearly five pubs shutting down permanently every week, leading to a total of almost 5,000 closures since 2016.
Despite industry challenges, Wetherspoons remains optimistic about its future, planning to open approximately 30 new pubs in the upcoming year, marking its most significant expansion in a decade. This decision comes after a period of closures within the chain and the wider sector due to financial pressures and changing consumer behaviors. Wetherspoons currently operates 794 pubs, with plans for further growth.