Gov looking out for ‘big boys’ of the industry

26-Sep-2022 - Last updated on 26-Sep-2022 at 08:49 GMT

Won't make a difference: licensee of the Faulkland Inn (pictured) claimed the Government is neglecting SMEs in favour of the 'big boys' of the industry

Last week’s announcements on energy discounts and measures addressed in the mini Budget did not have “any effect” on small businesses but made sure the “big boys” of the industry did “very nicely”, according to a Somerset-based operator.

Licensee of the Faulkland Inn Radstock, Andy Machen, said the proposed reduction in electricity costs alone would not be sufficient help for small businesses, and in particular, rural pubs.

He added: “We were all waiting for something that would make a financial difference to running a public house and what we got was a reduction in our electricity.

“Heating oil has more than doubled in price, bottled gas has more than doubled in price, even cooking oil has more than doubled in price.

“Anything that costs us has increased in price. We needed something financial, as opposed to a steadying of electricity.

“Giving us a fixed price on electricity just doesn't help, it doesn't cut the mustard. The whole thing is a mess.”

Big boys will do nicely

On top of the Energy Bill Relief Scheme announced by Business Secretary Jacob Rees-Mogg last week, Chancellor Kwasi Kwarteng’s mini Budget in the House of Commons on Friday 23 September included a freeze on planned increases for duty rates for beer, cider, and wine.

Additionally, an extension of draught relief to cover smaller kegs of 20 litres and above to help smaller breweries, as well as the reversal of the planned National Insurance increase, were also announced.

However, Machen, who has been licensee at the Faulkland for three years alongside wife Tina Paradise, claimed the Government had not looked out for small businesses such as independent, rural pubs, but rather the bigger pub companies.

He said: “We can't even break even. The income over the counter has not been sufficient to pay all of the overheads and wages.

“We've been holding on, we thought ‘crikey, the Government's going to come and help us out soon’.

“They've had every opportunity to help us out and they haven't. It's all about business rates, [which] we don't pay because we're so small. The big boys will do very nicely out of this. They don't have to worry about corporation tax anymore.”

Business isn't there

Furthermore, the operator stated small businesses, such as village pubs, would “go under” without financial support in the form of, for example, a reduction in VAT.

He added: “[We closed] Monday, Tuesday, Wednesday before all this raised its head. We could see putting staff in and electricity and all the other overheads, [for those days], the business just wasn’t there to pay for it.

“And, providing we took £2,500 in those four days, we broke even, and we were very happy to break even. We don't want to make loads and loads of profit, it's a lifestyle business running a village pub.

“We now have to take £4,000 in four days, and the business just isn't there. We can't suddenly turn a tap on and take an extra £1,500 in four days, we don't even do that over Christmas.

“The Government’s had every opportunity to save us. Now we're in this position and there must be countless other small businesses, not just pubs, on the cusp.”