Sacha Lord has criticized Chancellor Rachel Reeves, claiming her policies are more detrimental to pubs than the pandemic, as landlords argue that the government’s rescue package falls short of what the industry needs.

Last week, the Treasury indicated a significant reversal on impending business rate increases for pubs, following warnings that many establishments might be forced to shut down.

However, industry leaders caution that the impact extends beyond pubs, affecting cafes, restaurants, hotels, as well as music and theatre venues, and independent retailers.

Pub landlords voiced their concerns to the Mail, stating that closures are still imminent and urging the government to abolish the rate hike for all hospitality sectors.

Experts predict a potential closure rate of six hospitality venues per day over the next year if adequate support isn’t provided—potentially over 2,000 establishments.

Although the government reportedly plans to create a rescue package for the sector, specific details have yet to be disclosed.

Now Chair of the Night Time Industries Association Sacha Lord, who used to advise Mayor of Greater Manchester Andy Burnham, has warned the government is doing more harm to the hospitality industry than Covid.

Addressing the rumoured U-turn, which the government has been forced to make following Reeves’ decision at the Budget to end Covid-era relief to business rates, Mr Lord said it would be ‘unfair’ if it only applies to pubs.

He told the Daily Mail the reversal ‘has to be applied to the whole of hospitality’. 

Now Chair of the Night Time Industries Association Sacha Lord, who used to advise Mayor of Greater Manchester Andy Burnham, has warned the government is doing more harm to the hospitality industry than Covid did

The Treasury signalled a major U-turn on business rate hikes for pubs last week following Rachel Reeves’ Budget, in which she announced the end of Covid business relief rates

‘I watched the budget and [Rachel Reeves] stood there and said we have listened to hospitality and we are going to reform business rates,’ he said.

‘Then an hour later people began looking at their numbers and said this was untenable.’

He continued: ‘This Labour government has been worse for pubs than the pandemic. They needed our support during the General Election. 

‘We were told business rates are unfair, we are going to reform them to benefit hospitality. We were told they would reduce our bills and they would throw attention towards Amazon, parcel force, huge warehouses. 

‘They have done exactly the opposite.’

Under the measures announced in November’s Budget, a 40 percent relief on business rates introduced in the aftermath of the pandemic would be scrapped. 

Pubs were facing an average rise in rates of 76 percent over three years, while hotels were to go up 115 percent.

UK Hospitality estimated this would see the average hotel’s business rates bill increase by £28,900 in the first year and by £205,200 in total over three years, with the average pub paying £1,400 a year more initially and £12,900 over three years.

But pub landlords told the Mail how they are already facing closing down and having sleepless nights over numbers that ‘just don’t add up’.

They hit out at a raft of measures from government including the increase in employers’ national insurance contributions and minimum wage rises, as well as the hike to business rates, saying current tax levels are simply unsustainable.

Many are calling for a cut to VAT, arguing the UK’s rate is one of the highest in the whole of Europe.

Simon Delaney, 60, who runs The Firbank Pub and Kitchen, in Wythenshawe, Manchester, told the Mail the industry was already in a ‘real mess’ even before the last Budget and the hike to business rates would have seen his bill double.

Simon Delaney, 60, who runs The Firbank Pub and Kitchen, in Wythenshawe, Manchester, told the Mail the industry was already in a ‘real mess’ even before the last Budget

More than 1,500 publicans have banned Labour MPs from their venues in protest of government policies affecting the hospitality industry

One of those behind the campaign is Andy Lennox, who runs The Old Thatch in Wimborne, Dorset

Mr Delaney, who has been in the industry for four decades, said he has seen his business go from earning ‘a very good profit’ to ‘none whatsoever’ since the pandemic.

At the same time, prices have almost doubled with a premium lager rising from £4 to almost £7 at his pub since the pandemic. 

‘Now we’re just focussing on keeping the business running, keeping our 20 people employed, continuing to serve the community,’ he said. ‘What we can’t do is run a business when it’s constantly making a loss.’

Mr Delaney continued: ‘It’s not just the business rates hike, it’s the national minimum wage increase, the national insurance rise, all going up in real terms means an increase to our wage bill of £300 a week.

‘We’ve got a government that has broken every single promise they made from day one. When you’re not making a profit in the first place where does that come from? 

‘I have sleepless nights where I just don’t know what to do.

‘If the government does a U-turn that would be great, but it won’t be enough to save pubs from closing at an alarming rate. If I was younger, if I had a mortgage, I’d have to call it a day and close. 

‘If you keep taxing everything at some point there’s no money left and that business is going to go under.’

Andy Lennox, who runs The Old Thatch in Wimborne, Dorset, as part of a business that oversees multiple pubs and restaurants, recently banned Labour MPs from his venues.

He is one of the landlords behind the campaign which has seen some 1,500 publicans bar the parliamentarians, and has previously said he and other pub owners could go on strike if the government does not act to support the industry.

He told the Daily Mail: ‘We are waiting for the details on the rent relief reversal, we haven’t had any details at all so far. 

‘The main thing is that it needs to apply to all hospitality and not just pubs. What [the government] will do is they will come back after this reversal and say we’ve given you a massive support package.

Some pub owners are even warning they may be forced to go on strike as they say their businesses risk closure

‘Getting rid of a bill we are not paying yet is not support for landlords. The rates reversal is just removing a tax rise that we can’t afford to pay – but we can’t afford to pay the current taxes anyway.’

Mr Lennox is campaigning for a cut to VAT for hospitality to 13 percent in a bid to protect business owners and drive growth in the economy. 

He accused Labour of ‘utter incompetence’, adding: ‘The first Budget cost my business £350,000, and we stripped it back to the barest bones.

‘My business is absolutely at risk. I’ve been in the industry for 20 years, I know what I’m doing, I’m pretty good at what I do and I cannot make it work, I cannot make the numbers add up, they just don’t anymore.

‘In 2017 we were making about 15 percent profit. I reckon we’ve cut that to around 4 percent.’

Mr Lennox told how his business is only ‘marginally’ in profit, and that venues that were profitable two years ago are now making a loss.

‘You can’t afford to keep loss making venues on,’ he said. ‘This is all down to government policies that have been taken out.

‘If a busy pub that employs 50 people, has a good margin and is well run can’t make money, then there is something seriously wrong.’

It comes after weeks of criticism from pub bosses, industry chiefs and politicians over changes to business rates announced in November.

In the Budget, the Chancellor announced a reduction in the multiplier used to calculate business rates payments for UK businesses.

However, the Treasury also confirmed that it would phase out Covid-era discounts for retail, leisure and hospitality businesses, which mean property taxes for these firms are cut by up to 40 percent.

Ministers confirmed a £4.3 billion fund to help provide transitional relief as these discounts phase out, but this will only run until 2029.

Business Secretary Peter Kyle, who will discuss the issue with the Chancellor this week, also hinted support should not be restricted to pubs. 

He told the BBC the Government had been ‘in listening mode for some time’ on the issue, and that talks were held with the hospitality industry in Birmingham last week.

Mr Kyle said conversations with the Treasury had been ‘vigorous’ but ‘collegiate’. But the Treasury insisted there are still no plans to extend help on business rates to other sectors. 

A source said hotels and restaurants may benefit from wider licensing reforms, but help on rates would be ‘pub specific’.

But the UK hospitality industry is calling for the government to go further.

Kate Nicholls, Chair of UKHospitality, said: ‘Staggering increases to business rates will affect the entire hospitality sector and without a hospitality-wide solution, we will see significant business closures.

‘Thousands of venues, particularly neighbourhood restaurants and local hotels, will be forced to close for good as a result of the significant rates rises they’re facing.

‘This is yet another blow to a hospitality sector that bears the highest tax burden in the economy, and has already been disproportionately burdened by increases to NICs, wages, energy and other inputs.

‘Hospitality is one of the nation’s biggest employers and has an incredible potential to grow and create jobs, but the money coming in the front door is simply not enough to offset the rocketing costs of doing business. All of this undermines the Government’s objectives to grow the economy and help more people back into work.

‘We need a hospitality-wide solution that averts damaging business rates hikes in April.’