Clive Price, the director overseeing a chain of pubs in the UK, has voiced strong opposition to the recent tax increases included in Labour’s Budget. He anticipates that as a consequence of the financial changes, he will be liable for over £1 million in additional expenses annually, compelling him to reduce his workforce by 15 to 20 percent next year. With 24 years of experience and management of 10 Barons Pubs locations in Surrey, which is part of Greene King, he underscores the potential closure of some establishments due to the recent hike in employers’ national insurance payments that was announced by the Chancellor, Rachel Reeves.

The tax hike, along with an increased minimum wage, translates to an extra cost of around £2,500 for each employee working a standard 38-hour week throughout the year. Notably, the threshold for employer liability to pay national insurance will drop significantly from £9,100 per year to just £5,000. Mr. Price criticized the government's promise to reduce alcohol duty on draught beer as being misleading and an insult, likening it to providing inadequate support while creating further challenges for the industry.

He advocates for a reduction in VAT on food by 10 percent to align British regulations with those across Europe. Price mentioned he would prefer to pay corporation tax, as it would reflect a business profit. Highlighting the hospitality sector's significance as the third largest employer in the nation, he pointed out its role in providing employment for many young individuals entering the job market. He expressed concern that the recent tax changes would not only affect new part-time employees but would also impact all existing staff.

With predictions indicating that as many as one in four pubs could fail because of these new policies, Mr. Price asserted that it is unrealistic for the Chancellor to believe that pub businesses can absorb these increased operational costs. He shared his own difficulties in managing a small-margin business with slim profit returns. Criticism also came from Greene King’s CEO, Nick Mackenzie, who stated that the Budget decisions have negatively affected pubs during an already challenging period for the sector.

Furthermore, Reform UK’s London Assembly member Alex Wilson highlighted the alarming trend of pub closures in London, claiming that the Budget would further jeopardize the industry, still struggling from the repercussions of the lockdown. The Liberal Democrat Treasury spokesperson, Daisy Cooper MP, echoed this sentiment, stressing the importance of pubs as cultural and community hubs and calling for a complete overhaul of the current business rates system to prevent further closures.