Will This Week’s Budget Push More South West Pubs to the Brink?

Publicans across the South West say the pub trade is under severe pressure and are urging the government to step in ahead of this week’s Budget. Rising costs and increased taxation are being blamed for putting thousands of pubs at risk, with warnings that the sector is now at a critical tipping point.

Mounting Costs and Fears for the Future

Kevin Georgel, Chief Executive of St Austell Brewery, said: “Our sector contributes tens of billions to the economy, yet pubs are under increasing pressure from unsustainable tax burdens.

“Business rates are the most pressing issue. Relief was cut from 75% to 40% at the last Budget, adding thousands of pounds to annual rates bills. We need meaningful reform that works for businesses, not against them.

“The government must act now to keep a pint of great British beer affordable, protect jobs and ensure pubs remain open for generations to come. They are a vital part of British life.”

The concerns come as the British Beer and Pub Association predicts more than one pub will close every day in 2025. That would amount to 378 closures across England, Wales and Scotland.

Hayle Publicans Feeling the Strain

Damian and Miranda Knight have run pubs with St Austell Brewery for 12 years, including the Cornubia Inn and the Royal Standard Inn in Hayle. Damian said the current financial strain is unlike anything they have seen before.

“The spring budget changes, with business rate relief decreasing and National Insurance increasing, has been extremely tough. Our sales are up year on year but turning that into profit is the struggle.

“Everywhere we look, costs are rising. At the Cornubia, our live music nights are popular, but hiring a band costs more, karaoke fees have gone up, and our wage bill has soared.”

Challenges Across the Region

Adam Holland and Natalie Radford, who run the Blue Ball Inn in Exeter, say staffing costs are becoming increasingly difficult to manage. Adam, who has been a publican for 20 years, said: “We have 33 staff on the payroll, so National Insurance increases have been really challenging.

“We’re not like supermarkets that can raise prices and people will pay because they need essentials. We can’t keep hitting our customers with higher costs. Pubs are the centre of communities, and these are very challenging times.”

Campaign Calling for Government Action

St Austell Brewery is supporting the British Beer and Pub Association’s Long Live the Local campaign, which is calling for reductions to beer duty, business rates and VAT to help ease financial pressures on pubs.

To sign the petition or contact your MP, visit the Long Live the Local campaign at https://www.longlivethelocal.pub/staustell.

About St Austell Brewery

Independent and family-owned, St Austell Brewery was founded in Cornwall in 1851. The business now produces a range of award-winning beers including Tribute pale ale, Proper Job IPA and korev lager, which are sold in pubs and supermarkets across the country.

The company has recently refreshed its brand, following the rebrand of Proper Job IPA in March 2024 and the launch of Proper Job 0.5% in October 2024. In June 2025, it unveiled a new brand identity, updated values and an evolved sustainability plan.

St Austell Brewery owns more than 160 pubs and inns across the West Country and operates breweries in St Austell and Warmley near Bath. It also holds a minority share in Harbour Brewing Company and has a distribution network of six centres across the region.

More information can be found at the brewery’s website: https://www.staustellbrewery.co.uk/