Hospitality businesses need more help - landlord

Landlord Richard Knocker is calling on the government to do more to support the industry

A pub landlord in East Yorkshire is calling on the government to do more to support struggling hospitality businesses.

Business rates relief of 75% was introduced for pubs, restaurants, bars and cafes in response to the Covid-19 pandemic, but is set to be reduced to 40% in April.

Richard Knocker, who runs the Wolds Inn in Huggate, said that, despite it continuing, the impact of reducing the support would hit the industry hard.

The Treasury said without its intervention, business rates relief would have ended completely.

'Tough challenges'

"We are rated at £20,000 a year and we currently get 75% on that, which means we pay £5,000," Mr Knocker said.

"Relief going down to 40% will mean we pay another £7,000."

According to the British Beer and Pub Association, the equivalent of six pubs a week closed across England and Wales in 2024.

Morgan Schondelmeier, policy manager for tax and trade, said hospitability businesses were facing a perfect storm, with the cut in business rates relief alone meaning an increase of several thousand pounds to an average pub.

"At the same time we are going to see an increase in wages, along with an increase in National Insurance contributions that the publicans are going to have to pay for their staff," she added.

Mr Knocker said rising costs had also impacted the business, with the cost of meat and fish rising from £600 to £1,800 a week over the last two years.

"We can't reflect that in our pricing so our margins have got tighter and tighter. We need help from the government by reducing the VAT to help the hospitality sector," he said.

Pub owner Allen Slinger said people needed to support their local independents

Allen Slinger, owner of the Ferguson Fawsitt Arms in Walkington, near Beverley, described the situation as "challenging".

"There are really tough challenges ahead, and I just implore people to go to the local pubs as much as possible and use local independents, because they're the ones that really need your help," he added.

In a statement, a HM Treasury spokesperson said: "Without our action, business rates relief for retail, hospitality and leisure would have ended completely in April this year.

"More than half of employers would either see a cut, or no change, in their national insurance bills," they added.

Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.