BII calls for ‘meaningful’ support as April changes hit 80% of members

The British Institute of Innkeeping has called for “meaningful support for pubs, not empty words”, as its latest survey revealed that 80% of its members said that all four elements of the changes that came into force this April have negatively impacted their businesses. 

The BII’s 13,000 members mainly run independent pubs as free traders or tenants and lessees, and have consistently urged the government to allow them access to fair taxation. 

In 2024, even before the rising national minimum wage, employer National Insurance contributions, the change in the NICs threshold and the reduction in business rates relief, almost 75% of BII members said they were either breaking even or loving money. 

This was despite strong trading for many members, with staffing, energy and inflationary costs eroding their profitability. 

Due to the budget changes, the BII’s survey revealed that 83% of members will now reduce staff hours and shifts; 63% will reduce staff numbers, through recruitment freezes or redundancies; and 72% will reduce their spend with suppliers, many of which are local.

While the BII acknowledges that “there is no silver bullet that will help”, over 70% of members agree that a meaningful reduction in VAT is their top priority in reducing the overall levels of tax they face. 

Steve Alton, chief executive of the BII, said: “Brilliant operators, the length and breadth of the UK, who provide connection, careers and community for all, are being pushed to the brink, despite running vital and viable businesses.

“Rachel Reeves and Angela Rayner’s comments over the weekend that ‘pubs, bars and restaurants are the beating heart of our economy and our communities’ must be matched with meaningful action that will genuinely improve the profitability for our pubs across the country.” 

He added: “The drastic steps our pubs are having to take to keep their heads above water are a direct result of the already considerable pressures on profitability, before the recent tax rises – particularly in employment costs.

“We stand to see a real problem in our country if we lose more pubs. The government needs to understand the negative impact it will have on mental health and welfare services, let alone the economy and employment. So many people rely on pubs in their communities as safe spaces for community groups, families, friends, the vulnerable and the lonely.”