Government be like “who has done this to you Tom that’s terrible!?”
zeusoid on
Genuinely goes to show that it is dangerous to have a cabinet that has entirely no business experience.
They seem to have no real clue what the real world impacts of their policies are until they face the backlash.
True-Abalone-3380 on
It’s good that he’s vocal so people can see the additional layers of costs hitting hospitality. This is on top of the 2023 increases, remember businesses did not have the price caps domestic users had.
> Restaurants use a lot of energy, from powering ovens and fridges in the kitchens to lighting front of house – making them expensive places to run. Kerridge was quoted a 600% increase on his energy bill for The Hand and Flowers.
> his insurance bills have increased from £26,500 to £51,500 and coverage for hospitality venues had become “very difficult” to secure.
Salty-Bid1597 on
It’s only just starting to make the news but we’re in the middle of a hospitality apocalypse.
Already this year in my small town, out of 6 pubs (there were 9 a decade ago) 1 (the best one, with a lot of money behind them) has closed permanently, 1 has closed until February and two more have gone down to 3/4 days and short hours. Only the big brewery pubs are operating normally.
And even outside hospitality I’m hearing about a lot of small businesses that have given up after a shit Christmas and nothing but tax hikes and price rises on the horizon.
This is going to be the year that the chickens come home to roost.
chrisgbeldam on
Governments need to get a grip and re-vamp the entire business rates system. They also need to get a grip and make it so pubs pay less alcohol duty than supermarkets
davemee on
I dimly remember Osborne removing central funding for councils and telling them to make up the shortfall from business rates. Is this not partly the fruit of these policies?
jizzyjugsjohnson on
Those 200 quid Beef Wellingtons at Christmas should cover it
Mangeytwat on
Hospitality is fucked because alphas don’t drink.
I’m conflicted because I liked going to the pub when I was younger (lively pubs, quiet pubs, old people pubs, country pubs ,quiz night pubs, the whole gamut of English culture really) but alcohol is a fucking shit drug and it’s probably for the best that it’s falling by the wayside.
Ultimately COVID changed society in ways that won’t be undone and pubs are a victim of that.
TheKnightsRider on
2026 is going to be a tough year for any business. Costs are still high and climbing, wages aren’t moving nearly as quickly and frankly were heading back to the 80s where eating out is an occasional treat.
Hold on tight.
g_junkin4200 on
There’s a lot of business on my local high street who are closing up because they are facing the same thing. I do have sympathy for them but I do feel that partly the reason they are closing down is due to the shortsightedness with their business planning. They knew that the reduction in business rates were for COVID and they will go back up again to normal levels. But they planned their books like that was the normal rate. Sure it’s difficult to not do that with other business conditions and rising costs, but to get caught out like that then complaining about a “rates hike” feels like the business owners fault.
curious_throwaway_55 on
It never fails to blow my mind how high rates are for small businesses – it’s a great way to disincentive independent shops, etc
Tancred1099 on
Aye Tom, remind us again how much a dessert costs in one of your flagship pubs
flyin_jimmy on
My sisters catering company was extremely successful around 2 years ago, valued over 2 mill and has been running for around 8 years. With the rising inflation, increase wage costs/VAT, increased supplier costs and pretty much no way to increase the end product without people turning it down, while working a 70 hour week for essentially no profit they have decided to knock it on the head. 73 people made redundant. Labour policies are slowly killing small businesses at the moment.
They are in tears about it all, its so sad to see first hand.
jaseace1 on
I’m sorry! But I can’t feel any sympathy for a man who sells fish and chips at £30+
peelyon85 on
Im a bit naive around business rates.
If i wanted to open a business like a shop on the high street, id pay rent, utilities etc. Is business rates instead of council tax?
Do business rates go to local or central government?
How businesses manage to keep going regardless of the sector is beyond me.
I’d like to see local councils owning a lot of the real estate and try to reduce rents for businesses and potentially tax profits a bit more instead (with the assumption of loopholes being closed etc).
KernowKermit on
The fabians running the government are deeply ambivalent towards pubs, independent business and sustained culture in general.
Spamgrenade on
Was on the radio earlier complaining about how hard things were for his common little boozer full of working class chappies. In Marlow.
JackStrawWitchita on
A little cafe (small chain franchise) opened near me and closed within weeks. The owner said they misunderstood the lack of foot-traffic (just off a high street!) and the high cost of the business rates. Was losing money hand over fist, day by day, and couldn’t see any signs of an increase in patrons despite investing in local marketing. Decided to quit before he lost everything.
I’ve never seen a place open and close so quick.
steak-connoisseur on
Thinking out loud here but could we not impose a higher tax rate for the highest earning online businesses. If we can get the likes of Amazon, Google, Meta, Netflix, Starbucks to pay their fair share of taxes we wont need to go after smaller business’s
NoTitleChamp on
He knows we can see his prices right? Before and after the budgets.
AwarenessWilling5435 on
He’s obviously just not a savvy business man.
I can think of several businesses on my high street that are thriving. We’ve got: Mos Cuts, Mohameds Traditional Turkish Barbers, Istanbul Barbers, Turkish Style, Vape Heaven, Vape Cloud, Big Vapes, Juice Nation, Marmaris Authentic Pizza, Kebbanish, Shiraz, Schawarma Stop, One Stop Mobile Repair Shop, FixIt Mobiles, American Candy, Yanky Snacks, etc etc etc
Wrathuk on
poor guy might have to charge more then £37 for a fish and 4 chips to make a living now..
Specialist-Driver550 on
If you scrapped rates all that would happen is that rents would rise. A business that could afford to pay the rates can suddenly afford to pay more rent, and so the rent will go up.
It is possible that rates are set at the wrong level, but as long as business rents in a location are already more than zero rates are effectively being paid by the landlord in reduced rents.
MartyTax on
Ironically the same Labour that fought to make permanent the increase in benefit paid to people during covid now says “of course these temporary things had to come to an end” 😂
un_verano_en_slough on
Maybe my family are just from an especially shit part of the country, but I do find it pretty alarming coming home every year from abroad and seeing the state of the town center of my childhood.
I know this is about pubs, but in general it feels like there’s this massive, very visible market failure taking place with real consequences for the public good and government policy is just way too non-interventionist and centralized in response.
I feel like continental counterparts especially seem to recognize that local retail businesses especially have an important cultural function and that a society that loses those (alongside other things that get written off as inevitable victims of progress etc. like rural communities, local schools, hospitals) is genuinely and quite profoundly worse off.
I work in the American planning context so maybe I have a hammer and see everything as a nail, but I feel like much more local fiscal autonomy would be a start here maybe. It seems like individual towns and cities are limited in their capacity to experiment – which ought to be the one real benefit of going to shit.
xParesh on
Some of the highest energy prices in the world along with 3rd highest minimum wages in the world certainly won’t be helping pubs either.
Bitter-Policy4645 on
He needs to get the pubs redesignated as places of public worship. For some odd reason they are exempt from business rates despite religions being some of the richest organisations in the world.
Aconite_Eagle on
Business rates – probably THE key culprit for the state of our high streets, the middle class and the general flabbiness of the economy. But whoah…..colour me shocked it has an effect on businesses???? who could have forseen this?
Desperate_Caramel_10 on
Everyone dancing around houses and rent being too expensive and swallowing up wages.
I mean no shit pubs will collapse if people are spending 50% of their take home to keep a roof over their head.
Howyiz_ladz on
England is only for the super rich and the super poor. Everyone else has to fend for themselves. And it’s gonna get much harder, as the rich feck off overseas and the poor keep expanding. Fucked!
KeyHuckleberry2560 on
Don’t know what he’s worried about, he only had to sell 3 m&s beef wellingtons this Xmas to have that covered.
Shoreditchstrangular on
Business rates are based on a property’s ‘rateable value’.
This is an estimate by the Valuation Office Agency (VOA) of how much it would cost to rent a property for a year on 1 April 2021.
However, if you cannot rent/let that property because business rates are unrealistic, what is the true value of the property? A conundrum that I do not have an answer for, but clearly simply increasing it by a predetermined percentage, is not the answer. The significant number of empty retail units, indicates that business rates are part of the challenging equation
Educational-Angle717 on
I very much want pubs to survive but don’t like this bloke. He did some BBC show a few years ago all about it and instead of trying to boost indpendant places he was all for the ‘big breweries’ – you know the ones that monopolise areas and then put rents up. Not a fan.
33 commenti
Government be like “who has done this to you Tom that’s terrible!?”
Genuinely goes to show that it is dangerous to have a cabinet that has entirely no business experience.
They seem to have no real clue what the real world impacts of their policies are until they face the backlash.
It’s good that he’s vocal so people can see the additional layers of costs hitting hospitality. This is on top of the 2023 increases, remember businesses did not have the price caps domestic users had.
https://www.bbc.co.uk/news/business-66360076
> Restaurants use a lot of energy, from powering ovens and fridges in the kitchens to lighting front of house – making them expensive places to run. Kerridge was quoted a 600% increase on his energy bill for The Hand and Flowers.
https://www.thecaterer.com/news/tom-kerridge-no-let-up-hospitality
> his insurance bills have increased from £26,500 to £51,500 and coverage for hospitality venues had become “very difficult” to secure.
It’s only just starting to make the news but we’re in the middle of a hospitality apocalypse.
Already this year in my small town, out of 6 pubs (there were 9 a decade ago) 1 (the best one, with a lot of money behind them) has closed permanently, 1 has closed until February and two more have gone down to 3/4 days and short hours. Only the big brewery pubs are operating normally.
And even outside hospitality I’m hearing about a lot of small businesses that have given up after a shit Christmas and nothing but tax hikes and price rises on the horizon.
This is going to be the year that the chickens come home to roost.
Governments need to get a grip and re-vamp the entire business rates system. They also need to get a grip and make it so pubs pay less alcohol duty than supermarkets
I dimly remember Osborne removing central funding for councils and telling them to make up the shortfall from business rates. Is this not partly the fruit of these policies?
Those 200 quid Beef Wellingtons at Christmas should cover it
Hospitality is fucked because alphas don’t drink.
I’m conflicted because I liked going to the pub when I was younger (lively pubs, quiet pubs, old people pubs, country pubs ,quiz night pubs, the whole gamut of English culture really) but alcohol is a fucking shit drug and it’s probably for the best that it’s falling by the wayside.
Ultimately COVID changed society in ways that won’t be undone and pubs are a victim of that.
2026 is going to be a tough year for any business. Costs are still high and climbing, wages aren’t moving nearly as quickly and frankly were heading back to the 80s where eating out is an occasional treat.
Hold on tight.
There’s a lot of business on my local high street who are closing up because they are facing the same thing. I do have sympathy for them but I do feel that partly the reason they are closing down is due to the shortsightedness with their business planning. They knew that the reduction in business rates were for COVID and they will go back up again to normal levels. But they planned their books like that was the normal rate. Sure it’s difficult to not do that with other business conditions and rising costs, but to get caught out like that then complaining about a “rates hike” feels like the business owners fault.
It never fails to blow my mind how high rates are for small businesses – it’s a great way to disincentive independent shops, etc
Aye Tom, remind us again how much a dessert costs in one of your flagship pubs
My sisters catering company was extremely successful around 2 years ago, valued over 2 mill and has been running for around 8 years. With the rising inflation, increase wage costs/VAT, increased supplier costs and pretty much no way to increase the end product without people turning it down, while working a 70 hour week for essentially no profit they have decided to knock it on the head. 73 people made redundant. Labour policies are slowly killing small businesses at the moment.
They are in tears about it all, its so sad to see first hand.
I’m sorry! But I can’t feel any sympathy for a man who sells fish and chips at £30+
Im a bit naive around business rates.
If i wanted to open a business like a shop on the high street, id pay rent, utilities etc. Is business rates instead of council tax?
Do business rates go to local or central government?
How businesses manage to keep going regardless of the sector is beyond me.
I’d like to see local councils owning a lot of the real estate and try to reduce rents for businesses and potentially tax profits a bit more instead (with the assumption of loopholes being closed etc).
The fabians running the government are deeply ambivalent towards pubs, independent business and sustained culture in general.
Was on the radio earlier complaining about how hard things were for his common little boozer full of working class chappies. In Marlow.
A little cafe (small chain franchise) opened near me and closed within weeks. The owner said they misunderstood the lack of foot-traffic (just off a high street!) and the high cost of the business rates. Was losing money hand over fist, day by day, and couldn’t see any signs of an increase in patrons despite investing in local marketing. Decided to quit before he lost everything.
I’ve never seen a place open and close so quick.
Thinking out loud here but could we not impose a higher tax rate for the highest earning online businesses. If we can get the likes of Amazon, Google, Meta, Netflix, Starbucks to pay their fair share of taxes we wont need to go after smaller business’s
He knows we can see his prices right? Before and after the budgets.
He’s obviously just not a savvy business man.
I can think of several businesses on my high street that are thriving. We’ve got: Mos Cuts, Mohameds Traditional Turkish Barbers, Istanbul Barbers, Turkish Style, Vape Heaven, Vape Cloud, Big Vapes, Juice Nation, Marmaris Authentic Pizza, Kebbanish, Shiraz, Schawarma Stop, One Stop Mobile Repair Shop, FixIt Mobiles, American Candy, Yanky Snacks, etc etc etc
poor guy might have to charge more then £37 for a fish and 4 chips to make a living now..
If you scrapped rates all that would happen is that rents would rise. A business that could afford to pay the rates can suddenly afford to pay more rent, and so the rent will go up.
It is possible that rates are set at the wrong level, but as long as business rents in a location are already more than zero rates are effectively being paid by the landlord in reduced rents.
Ironically the same Labour that fought to make permanent the increase in benefit paid to people during covid now says “of course these temporary things had to come to an end” 😂
Maybe my family are just from an especially shit part of the country, but I do find it pretty alarming coming home every year from abroad and seeing the state of the town center of my childhood.
I know this is about pubs, but in general it feels like there’s this massive, very visible market failure taking place with real consequences for the public good and government policy is just way too non-interventionist and centralized in response.
I feel like continental counterparts especially seem to recognize that local retail businesses especially have an important cultural function and that a society that loses those (alongside other things that get written off as inevitable victims of progress etc. like rural communities, local schools, hospitals) is genuinely and quite profoundly worse off.
I work in the American planning context so maybe I have a hammer and see everything as a nail, but I feel like much more local fiscal autonomy would be a start here maybe. It seems like individual towns and cities are limited in their capacity to experiment – which ought to be the one real benefit of going to shit.
Some of the highest energy prices in the world along with 3rd highest minimum wages in the world certainly won’t be helping pubs either.
He needs to get the pubs redesignated as places of public worship. For some odd reason they are exempt from business rates despite religions being some of the richest organisations in the world.
Business rates – probably THE key culprit for the state of our high streets, the middle class and the general flabbiness of the economy. But whoah…..colour me shocked it has an effect on businesses???? who could have forseen this?
Everyone dancing around houses and rent being too expensive and swallowing up wages.
I mean no shit pubs will collapse if people are spending 50% of their take home to keep a roof over their head.
England is only for the super rich and the super poor. Everyone else has to fend for themselves. And it’s gonna get much harder, as the rich feck off overseas and the poor keep expanding. Fucked!
Don’t know what he’s worried about, he only had to sell 3 m&s beef wellingtons this Xmas to have that covered.
Business rates are based on a property’s ‘rateable value’.
This is an estimate by the Valuation Office Agency (VOA) of how much it would cost to rent a property for a year on 1 April 2021.
However, if you cannot rent/let that property because business rates are unrealistic, what is the true value of the property? A conundrum that I do not have an answer for, but clearly simply increasing it by a predetermined percentage, is not the answer. The significant number of empty retail units, indicates that business rates are part of the challenging equation
I very much want pubs to survive but don’t like this bloke. He did some BBC show a few years ago all about it and instead of trying to boost indpendant places he was all for the ‘big breweries’ – you know the ones that monopolise areas and then put rents up. Not a fan.