Cornwall Pub Landlords Express Concern Over Budget’s Economic Impact and Beer Duty Change

Mark Holden, a landlord operating three pubs in Cornwall with 92 employees, stated that the rise in employers’ National Insurance (NI) contributions is projected to cost his business £44,000 annually. Mr. Holden, who also serves as a spokesperson for the British Institute Of Innkeeping, indicated that the 1p decrease in duty on draught beer would not result in a lower price per pint. Separately, another pub manager in Cornwall characterized the Budget’s emphasis on the beer duty reduction as “insulting” to the pub sector. Chancellor Rachel Reeves explained that the NI increase was essential for economic stability, though she conceded it might impact workers’ wages. Mr. Holden, whose three pubs operate under a tenancy agreement with St Austell Brewery, predicted that the Budget would cause pub prices to increase. He stated: “The 1p draught beer duty reduction which is used as a headline is a bugbear for me – please don’t think the price of a pint is going to come down.” He added, “The National Insurance contribution increase is going to cost us as a business £44,000.” Additionally, the National Minimum Wage is set to rise to £12.21 per hour next year, a change that will further escalate operating expenses for pubs. “Expect some price rises, it’s inevitable that is going to happen,” Mr. Holden commented. Lara Trubshaw, proprietor of the Peterville Inn in St Agnes, remarked that the Budget “was far more painful than even we predicted.” She characterized the 1p reduction in draught beer duty as “insulting.” She elaborated: “To have people think there’s going to be a drop in the price of beer when there have been so many other price hikes put on our industry.” She continued, “With the increase in National Insurance, the minimum wage and the increase in business rates, that anyone thinks there will be a decrease in prices is quite frankly laughable.” Prime Minister Keir Starmer stated that the government was compelled to undertake “what is responsible to fix the foundations and rebuild our country.” He further explained: “The principles that we put in place are to stabilise our economy and to invest in the future, along with reform.” He indicated that this approach would result in investments across the NHS, schools, housebuilding, and other sectors. For updates from BBC Cornwall, follow on X, Facebook, and Instagram. Story ideas can be sent to spotlight@bbc.co.uk. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding the BBC’s policy on external linking is available.