Pubs and the wider hospitality sector raised a glass to Bolton Conservatives after they won a vote on their motion to Council last week. This motion asked Bolton Council to write to Rachel Reeves and demand the reinstatement of the higher business rate relief that was given to the hospitality sector by the Conservative government. Rachel Reeves cut the relief in the Autumn Budget of 2024.
On average, Bolton pubs are facing an increased tax bill of £3,499 following the cut to business rate relief. In total, that is £556,379 extra in tax. Additionally, the National Insurance increases forced on business add an extra £800 per worker, including part-time staff.
With economic forecasts being downgraded, more people in Bolton signing onto Universal Credit, and unemployment rising, our pubs are at crisis point. The additional tax burden, on top of net-zero levies on energy and making it unsustainable for pubs to operate in Bolton.
Mover of the motion, Cllr John Walsh, said:
It may not seem a lot to be faced with a reduction in business rate relief, but if you look at the average loss of business rate relief will be £3,500. And if you equate that to pints, pubs in Bolton would have to sell an extra 2,500 pints just to cover that tax bill. If you look at National Insurance increase too, that means an extra 500 pints need to be sold. When you add all this up, the turnover doesn’t exist because drinking habits have changed. Bolton Labour should be ashamed of their inaction.
Seconder of the motion, Cllr Les Webb, added:
Pubs are telling me that the biggest impact on their business in the last year has been the Autumn Budget from Rachel Reeves. Across the country, 74% of pubs are now reducing staff hours, 70% are reducing staff, 30% are opening fewer hours, and 35% are saying they’ll have to close altogether. It is shameful that Bolton Labour voted against supporting the local pub and hospitality trade.
