Pubs 'deeply and painfully wounded' in wake of Autumn Budget

The Budget is a 'deep and painful wound' for pub trade, an industry boss has warned amid sinking confidence in the Government.

Emma McClarkin, chief executive of the British Beer and Pub Association, warned venues will shut, jobs will be lost and the price of a pint will go up in a £650m hit to the sector.

Brewers and pub companies have been left 'reeling' after being let down by Rachel Reeves last month, she said.

Labour had been elected on a 'crystal clear' pro-growth agenda but had ultimately 'slapped on business one of the biggest bills they have ever seen,' McClarkin added.

'It is very difficult to put the two positions together. There has been some faith lost,' she said.

McClarkin said: 'The Budget is a deep and painful wound that is going to take the industry a long time to recover from.'

A raft of higher costs including the National Insurance contributions paid by employers (NICs), the National Minimum Wage and a new workers' rights package, will heap extra pressure onto firms.

Her group represents major brewers including Greene King, Molson Coors and Heineken UK, as well as 20,000 pubs across the country.

There is still time for Labour to 'repair' its strained relationship with publicans but ministers must 'listen to business' on demands to maintain critical support including business rates relief, she said.

In a major blow for the industry, the Government has left firms facing a sharp rise in business rates in April, with the average pub facing a £6,000 annual hike.

This is despite a manifesto pledge to 'replace the business rates system' to 'level the playing field between the High Street and online giants'.

But Labour simply said it would launch a consultation, with an overhaul expected only in 2026. And sector pleas to maintain an existing 75pc relief on this levy were ignored, with Reeves reducing it to a 40pc rate.

At her first Budget, Reeves declared the price of a pint of beer would fall as she reduced beer duty by the equivalent of a penny per drink.

But publicans say the cut will be more than swallowed by rising costs elsewhere.

The barrage of increases will leave them with no other choice but to pass costs on to punters.

Pubs have an integral role both supporting jobs and bringing people together socially, McClarkin said.

But she warned their vital community role is under threat due to the increasingly hard to stomach costs.