Pubs 'don't have anymore to give' - McDowall

McDowall, speaking to the BBC’s Today programme, said thousands of landlords were currently only making around 12p of profit from every pint they sell.

He said that the removal of relief on business rates would see operators rates bills quadruple from April next year, and along with the other costs operators were struggling with “they don’t have any more to give”.

Rates relief for pubs, which was introduced during the pandemic and gives pubs 75% off their bill, were extended by the previous chancellor Jeremy Hunt in the last budget.

Speaking on the Today programme, McDowall said operators had faced a “barrage” of challenges in the past few years, recovering from Covid, handling high inflation, spiralling energy costs and the increased pressures on consumer spending.

With government policies, such as the rumoured increase for employers in NI contributions, many operators are fearing the worst ahead of next week’s budget, with many warning their businesses are hanging by a thread.

“The complete removal of rate relief would prove very, very costly for pubs, bars, restaurants and cafes up and down the length and breadth of the UK,” he told presenters.

Research by UKHospitality and the British Retail Consortium has highlighted that the removal of rates relief would cost hospitality and retail an extra £2.5bn.

Calls are also continuing from hospitality trade associations to urge the Government to stick to its manifesto pledge to reform the business rates system, a reform the sector has long been campaigning for.

McDowall, who runs the UK’s largest pub company, was one of a number of industry signatures who this week signed a letter to chancellor Rachel Reeves calling for reform and the maintenance of rates relief.