The group – which supports hundreds of pub, bar and brewery people facing crisis with practical, emotional and financial issues – said hikes in national insurance contributions and rise in national living wage has already seen an increase in calls seeking assistance for financial and legal advice.
Concerningly, a number of those callers approached the LTC wanting to better understand options and the potential impact of exiting a business.
LTC CEO Chris Welham said: “We all know from previous fiscal cycles that increases in financial pressure on a business inevitably lead to very difficult decisions, changes in head count and the way businesses are run.
“However, the feedback in the past few weeks feels different. The British Institute of Innkeeping (BII) has already reported the increase in business rates will render 80% of pubs unprofitable, leading to at least one in four pubs closing.
“This is life-changing for those in hospitality – and potentially, for the communities they serve.”
Significant spike
Last year represented the busiest year on record for the LTC, with a significant spike in individuals requiring support with their mental wellbeing, and assistance with their finances.
Importantly, 23% of calls received by the LTC were referred to the grants team to discuss necessary financial assistance, with more than £1.6m awarded in grants and services by the charity, up from £1.14m in 2022.
With the licensed trade having faced high inflation, energy hikes and rising employment costs in recent years, Welham believes the measures announced in the most recent Budget, will drive an even higher demand for the charity’s services and resources, with independent operators projected to be particularly at risk.
Welham added: “For many operators, further cost-saving simply isn’t an option. We’ve noted a worrying spike in callers needing support while they consider and manage the pressures of exiting their business and the impact that this might have.
“If we lose licensed premises at the rate that many fear, this will, of course, have a massive impact on the communities those premises are located in, along with the sector workforce, where job losses are certain to be detrimental to health and wellbeing.”
Risk to wellbeing
Beyond the concern of increased site closures and job losses, the LTC has also identified a significant risk to the wellbeing of hospitality staff remaining in role.
Post-pandemic, as the licensed trade recovered from the lockdown, the LTC tracked an increase in calls from newly promoted managers and their direct line reports. As a result of cost-saving and labour shortages, both groups of employees had to manage increased workloads and premature promotion, and Welham believes the same will happen again.
He said: “Our focus is on supporting those in the sector to manage the practicalities around the impact of the Budget on the day-to-day running of their businesses. We have a raft of resources to help with financial pressures and protect and promote health and wellbeing.”
LTC’s Management Support Line is a consultancy service for those working in a supervisory position, delivered by subject experts, and provides guidance on a range of issues to help navigate these sorts of difficult trading circumstances. Its Helpline is open 24/7 and is available for all those working in the licensed trade who find themselves in need of help.
Welham concluded: “Our sector is renowned for its ability to innovate and adapt to challenge. Nonetheless, this next year is not going to be easy and while I know many in our sector will find new ways to tackle the current challenges, we’re here to help with the emotional and, where we can, financial, pressures that will present themselves.”