Young's pub chain expects to take £11m hit from Budget tax rises

Chief executive Simon Dodd said the increase in tax, combined with a rise in the minimum wage, would result in 'significant increased costs for our industry in the near term'

Pub chain Young's is bracing for an £11m yearly blow due to increased employer taxes as unveiled in the autumn Budget.

Chief executive Simon Dodd commented on the financial strain from the rise in employer national insurance and the higher minimum wage, saying it will bring "significant increased costs for our industry in the near term".

He continued: "We will work to see how we can mitigate these headwinds without passing on all the cost to our loyal customers. We would like to see certainty and delivery of real business rate reform which will benefit all hospitality businesses."

Young’s has joined fellow pub group JD wetherspoons in voicing concerns over the measures, introduced by Labour Chancellor Rachel Reeves, with Wetherspoon's chief Tim Martin warning that costs are set to climb "substantially". This news comes as Young’s announced a rise in half-year profit, partly thanks to a sales boost from the summer's Euros football event.

The company reported a pre-tax profit of £25.3m for the half ending 30 September, a 3.3% increase from last year, while revenue surged by 27.2% to £250m. Mr Dodd also noted the success of acquiring the 55-pub-strong City Pub Group, despite the summer weather affecting business.

He expressed satisfaction with the company's performance, stating, "I am very pleased with our performance and the progress we have made during the period, which has been achieved despite some challenges."

"The weather was frustrating yet again, with a wet spring and limited periods of prolonged sunshine during the summer months, however, Euro 2024 and England’s successful run to the final, provided a welcome boost to drink sales with our pubs performing exceptionally well on match days".