Pubs will continue to close every day and the “big boys” will keep rising prices – and the government’s announcement of a cut to VAT on some drinks will make no difference – one pub in Swindon has said.
Many local watering holes are forced to just “carry on” as there is “no other way”, whilst profit margins are disappearing as energy bills and product costs go through the roof.
The government announced last week that tax paid on pints and other drinks on tap will be up to 11 pence cheaper than their supermarket equivalents in what is being dubbed the “Brexit Pubs Guarantee”.
But despite Prime Minister Rishi Sunak saying it will “benefit thousands of businesses across the country”, bosses at some of Swindon’s watering holes are yet to be swept off their feet by the plans, saying that prices will still have to rise and pubs will continue to close.
Ilia Kleklvkin, estate manager at Hopback Brewery, the firm which owns the Glue Pot in the centre of Swindon, said: “Pubs are still closing every day, the only beer we will be able to reduce the price of is under 3.5 per cent.
“We won’t be able to reduce the price of the beers with all the raw materials going up like crazy and labour going up and the business rates it is just not transferrable to the consumer
“Revenue has been reducing gradually since last year, since the spike in utilities and people were unstable about how they were going to get through the winter.”
In order to counteract the rising business costs, the 37-year-old explained: “We have cut the labour a little bit and trying to brew more efficiently, trying to cut the costs of the brewery and in the pub.
“We have had to put the prices up, not massively because obviously we are trying to keep the customers in.
“The pubs will continue to close, the small breweries will continue to close and the big boys will continue to raise the prices, we will just carry on, there is no other way, we will have to pull through.”
Hemant Thaba, manager of the Runner said that they have seen a decrease of 40 percent in revenue since the first week of July.
“It is raining every day, the weather is making a difference,” the 30-year-old said, “people want to come to the beer garden, but with all this weather and people not going out because they haven’t gone out in two, three years, there is definitely some impact generally on the revenue”.
Andy Marcer, landlord of the Beehive in Regent Circus, said: “The big issue for pubs is the energy prices, some people are paying massively more than a year ago.
“Beer has gone up, breweries are quite energy dependant, transport and the cost of ingredients, that’s all gone up, wages have also gone up,” the 64-year-old added.
He shared his concerns about the industry as a whole, adding: “For some people it is a real struggle and it is a real shame to see the number of pubs that are closing, I think that we’re up to about 30 pubs a month in England.
“Pubs have always been one of those great British bastions and it’s a shame to see these small pubs closing.”
Speaking last week, Mr Sunak said: “I want to support the drinks and hospitality industries that are helping to grow the economy, and the consumers who enjoy the end result.
“Not only will today’s changes mean that that the price of your pint in the pub is protected, but it will also benefit thousands of businesses across the country.”
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