As the director of his pub in Port Talbot, James Graham has had to resort to relying on his children to work shifts, as he cannot afford to pay for staff. His financial struggles are not unique, with anxious pub owners across Wales worried that upcoming changes to business rates could see thousands of pounds added to their bills.
While the UK government is planning to soften the impact of business rate adjustments set to come into place in England in April, there are calls by trade bodies for the Welsh government to do the same. A Welsh government spokesperson said it already provided “substantial rates relief”, and that over a quarter of pubs in Wales will pay no rates next year.
According to James, the pub industry has changed a lot in the five years since he took over the keys to The Tyn Y Twr Tavern in Port Talbot. “It was open seven days when we bought it five years ago, it went down to six, now it’s down to five,” he said. “That’s for one reason alone, it’s just too expensive to run an empty pub.”
In Cardiff, David Rowland, the former general manager at the North Star pub, had been working 100-hour weeks as a way to try and save money, by filling in for staff rather than replacing them as they left. “I didn’t have a day off from September until New Year’s Day,” said David, who has worked in hospitality his whole career and fears the rate of pub closures will mean “losing that part of our cultural heritage”.
According to David, while the cheapest pint at his pub would cost £2.10 to put on the bar and sold to customers for £4.50, the business was “only getting around 15 pence of that”. “I’d genuinely be better off working part-time stacking shelves for the hours and the money that I was getting,” he said.
The British Beer and Pub Association (BBPA) is among those now calling on the Welsh government to follow the UK government’s lead and review the planned changes to business rates. Emma McClarkin, CEO of the BBPA, said pub owners across Wales were “already burdened with crushing taxes and business rates, but the proposed changes will place them in an impossible position”.
David Chapman, executive director of trade body UK Hospitality Wales, said one of its businesses estimated they paid about 17 or 18 different forms of taxation. “Not only do we serve our local community but there are factors like loneliness, there are factors about connection, meeting with friends, celebration which should not be underestimated,” he said.
A Welsh government spokesperson said it “recognised” the pressure facing pubs in Wales and that it has “provided more than £1bn in temporary support to retail, leisure, and hospitality businesses since 2020.” However, with rising costs and staffing challenges, many pub owners in the country are facing an uncertain future.