Greene King chief warns pub industry reaching breaking point

Summarised from 2 outlets · Updated 20 Oct, 08:32 · Archive

Greene King's finance chief warns that soaring taxes and employment costs have pushed the UK pub industry to breaking point.

Jonathan Fearn, finance chief of Greene King, has warned that soaring taxes and employment costs have pushed the UK's hospitality industry to breaking point. He said decisions taken by the Labour government have created a 'cocktail of costs, which have made it ever harder for a pub to run its business'.

Fearn said inflation has added £400m to Greene King's business costs since 2019. In that time, hourly pay has increased by more than 60 per cent, while electricity, gas and water bills have risen by 50 per cent. Greene King's total business rates bill is £60m annually across its 1,500 pubs. Research by the British Beer and Pub Association found that a pub makes just 12p profit from each pint sold.

Fearn called on the Chancellor to take action on business rates, national insurance and VAT. He welcomed Andy Burnham's decision to cut business rates for pubs by 20 per cent, estimated to save each pub about £1,100, but said this 'pales in comparison' to other cost pressures and 'will almost certainly be cancelled out' by accelerating wage inflation. The intervention comes as the Chancellor faces rising pressure to curb costs facing the hospitality industry at next week's Budget.

How it is being reported

• Greene King boss: Pub industry ‘reaching breaking point’The finance boss of Greene King has warned that soaring taxes and employment costs have pushed the UK’s hospitality industry to “breaking point”. Jonathan Fearn, finance chief of the privately-owned pub chain, said decisions taken by the Labour government have “created a cocktail of costs, which have made it ever harder for a pub to [...]City AM · 20 Oct, 08:23
• Greene King chief pleads for relief from 'punishing' costs as pub chain employs fewer teens after hikesWriting exclusively for The Mail's sister publication This is Money, Greene King's Fearn said that a 'cocktail of costs' means 'the industry is reaching breaking point.'This is Money · 20 Oct, 07:00

In this story: Greene King · Jonathan Fearn · Labour · John Healey · Andy Burnham · British Beer and Pub Association · UK

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