Tax Hike Increases For Havering Pubs.

Romford Ward Councillor David Taylor today writes in the Havering Daily on the tax hikes facing pubs across the borough.

Tax increases, implemented by the Labour government, are set to cost Havering pubs as much as £68,000. 

At the last Autumn budget, the Chancellor revealed a series of tax rises for local employers.  Despite manifesto commitments “to not raise taxes on working people”, National Insurance Contributions for employers are set to rise by £900 for each worker they employ on average. According to the Institute For Fiscal Studies, for each worker earning £22,000 a year, this will rise to £770 extra for the employer. This will have a significant impact on local businesses.

On the contrary, the Conservative Government gave a tax cut to 27 million working people in April 2024. The average employee received a £450 tax cut to their National Insurance Contributions.

Speaking about the impact on local businesses, Adam Baker, Chairman of the Hornchurch and Upminster Conservative Association said “The Labour Government is grinding the UK to a halt. We have seen low growth, tax rises to National Insurance Contributions and a new Family Farm’s tax which will increase the cost of farming hops needed for beer. Labour’s 1p tax cut for a pint, means local people have to buy 479 pints to get one free!”

 The budget will also hit pubs particularly hard because of 35% cuts to business rate relief for retail, hospitality and leisure. Under the Conservatives, pubs received 75% business rate relief.  This comes alongside a 0.9p increase to the business rate multiplier. So what does this mean?

According to data calculated using HRMC figures, in many cases, business rates have tripled in a single year for pubs. Some local cases include £68,186 extra for The Liberty Bell in Romford, £35,075 extra for The Fatling in Hornchurch, £16,722 extra for The Crumpled Horn in Upminster.

Also announced at the budget was a 1p tax cut for pints. This should shave 0.2% off the cost of a pint. But will costs rising dramatically for business rates and for National Insurance Contributions, it will only get tougher for local pubs to survive.

The Save The Local campaign is calling on Labour to reconsider and residents can back local pubs by visitingwww.SaveTheLocal.com

Speaking on the issue, Councillor David Taylor said  “Yet again our pubs and small businesses are being targeted with higher taxes, which will no doubt force many to close and jobs lost. Anyone who thinks our local pubs can afford an extra £20,000 in taxes is living in a fantasy. This move shows us that Labour don’t understand business and that they don’t care about preserving the character of our towns. Romford has already suffered a complete loss of it’s nightlife under Mayor Khan, now our pubs are under threat. This tax hike must be reversed.

Please take the time to join our campaign to save the local, visit www.savethelocal.com”

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