'Squeezed' publicans campaign for lower taxes

Mark Grist, owner of Smith's Tavern in Ashbourne, says the town's pubs all support each other.

"The pub is the backbone of the British people and if all the pubs disappear that's a large part of Britain gone."

Mark Grist, owner of Smith's Tavern in Ashbourne, Derbyshire, says he is fully behind an industry campaign calling on Chancellor Rachel Reeves to cut taxes on pubs in this week's Budget.

The British Institute of Innkeeping - which is leading the campaign - said only one in three pubs nationally is making a profit and it wants cuts to VAT and business rates as well as incentives to recruit staff.

The Treasury said it is already taking a number of measures to cut costs for pubs - including reducing business rates.

Mr Grist told the BBC his pub is doing relatively well but even he feels squeezed and his profit margins are very slim.

"I think the big thing talked about across the industry is a VAT reduction, which would give us an increased margin, because at the moment everything's running very tight to the wind," he said.

Steve Alton's British Institute of Innkeeping wants more support from the chancellor

His comments are echoed by the Steve Alton, chief executive of the British Institute of Innkeeping.

He lives in Ashbourne, close to a wide range of pubs, including Smith's Tavern.

Mr Alton said even though his members had enjoyed a good year of trading so far, many of them were still struggling with the impact of April's tax rises and he estimates 35% of the UK's pubs are at risk of closure.

"A strong top line does not mean necessarily that you're making a profit ... so we need to see a change," he said.

He has written to the chancellor to ask her to back pubs in the budget, stressing they deserve the help because of the role they play in the community.

"Pubs play such a powerful force around tackling social isolation and loneliness with people in lots of communities - the only place that they reach out and go and connect with other people is in their local pub," he said.

"Now, equally, one in three visits now to pubs is no longer alcohol-related - they provide great coffee and breakfast and meals and community groups and activities."

Amanda Hodson Walker would like to open her House of Beer for more hours

It is less than five minutes walk from Smith's Tavern to Amanda Hodson-Walker's House of Beer, a combined bottle shop and tap room.

She loves her work alongside husband Robert and said their business was doing well but taxes and running costs meant they struggled to afford staff and so they ended up doing most of the hours themselves.

"We go from 11 in the morning right through to the evening .... It does take it out of you," she said.

"Even on your days off you're still working and I do tend to get a lot of my work done when I'm off on a Monday and a Tuesday first thing in the morning."

Ms Hodson-Walker says she would love to expand but the extra revenue she could bring in would not justify hiring someone new.

"We'd like to grow it further, but at the moment with the current heating costs, staff costs and everything, we just can't because obviously we'd have to give even more hours of our time," she said.

Both publicans agree they could use a helping hand from the Budget and both agreed with Steve Alton's justification for special treatment.

"There's a real sense of connection," said Ms Hodson-Walker. "The whole pub knows each other and they will use this as a meeting point."

Mr Grist said he believes landlords share that connection not just with their customers, but with each other.

"The more pubs we can keep open, the better for me," he said.

"I don't see them as competition, I see them as partners, just helping to provide that service right across the board."

The campaign for lower taxes on pubs received the backing of Derby City Council last week.

Councillors called for "meaningful measures ... to support the long term survival of the hospitality industry."

A government spokesperson said: "Pubs are vital to local communities, that's why we're cutting the cost of licencing, lowering their business rates and helping more pubs offer pavement drinks and al fresco dining, on top of cutting alcohol duty on draught pints and capping corporation tax."