Pub boss blasts Labour over tax hikes as business faces soaring costs

The boss of a major British pub group and brewer blasted Labour’s handling of the economy as he accused ministers of ignoring business.

Jonathan Lawson, chief executive of Butcombe Group, said ‘this year was quite difficult for us to plan already’ due to tax hikes and other costs even before the outbreak of war in the Middle East.

He said the government is ‘not listening’ to the concerns of business over issues such as business rates.

And he said he would ‘challenge’ claims Labour is doing ‘a good job’ on the economy after official figures this week showed output rose by 0.5 per cent in February.

Lawson, whose company has over 130 pubs, bars and inns, mainly in the South of England, highlighted the impact on business of increases in national insurance contributions, the minimum wage and business rates before the Iran war sent energy prices soaring.

‘This year was quite difficult for us to plan already,’ he told the BBC.

‘We had a very good year last year and we invested significantly into our business.

‘But the rising costs and tax base that this government and previous governments have inflicted on business and on our sector in particular make it very difficult for us to have confidence around investment and employment growth and the latest increases in the national minimum wage have added to that.

‘We are always optimistic. But I think the government’s narrative at the moment that the latest GDP figures are showing signs that they are doing a good job, I would challenge that.’

Lawson said Rachel Reeves’ national insurance tax raid and inflation-busting rise in the minimum wage cost the business ‘over £2million’ last year.

And he sounded the alarm over this month’s 8.5 per cent rise in the minimum wage for 18 to 20-year-olds to £10.85 per hour.

The hourly rate has gone up 26 per cent since Labour came to power as ministers seek to put pay for this age group on a par with those aged 21 and over – despite warnings it is pricing the young out of work at a time when youth unemployment is at an 11-year high.

Lawson contrasted those extra costs with the £150,000 saving the company was handed when the Chancellor watered down her botched business rates reforms following a fierce backlash from the industry that saw Labour MPs banned from many pubs.

Dismissing the help on business rates, he said: ‘They have made a big deal out of what in context is a small amount of money for our business.’

Lawson added: ‘The Government is not listening, and we need to be very clear about this. The Government and Chancellor promised to reform business rates for our sector and retail. They have still yet to deliver on their promise.’