The landlord of Nantwich’s oldest pub has hit out at Prime Minister Andy Burnham’s pledge to cut business rates saying it “won’t even touch the sides”.
Mr Burnham told pubs this week that the “the cavalry is coming” as he announced parts of the hospitality sector, including clubs and live music venues, would get a 20% cut in business rates from April.
But Darren Snell, landlord at The Black Lion on Welsh Row, has slammed the move as ‘weak’ and ‘just a drop in the ocean’ as pubs grapple with other crippling costs in particular VAT.
He said: “This week we celebrated being named in The Telegraph’s Best Pubs Guide, brilliant news but marred by this weak response to the plight of hospitality.
“Years of wage increases, employer National Insurance, energy costs and other overheads mean the rates measure is simply too small.
“And many seem to forget that just over two years ago we had a 100% increase in business rates.
“For 2024/25, eligible retail, hospitality and leisure businesses received 75% Business Rates Relief. Then Rachel Reeves’s October 2024 Budget reduced that relief to 40% for 2025/26.
“So if you had previously been paying only 25% of the full rates bill, moving to 40% relief meant paying 60% of the full bill.
“In simple terms, a £10,000 underlying rates liability would have gone from £2,500 to £6,000 — a whopping 140% increase in the amount actually payable.
“The new Prime Minister has recognised we are struggling but his response is weak – won’t even touch the sides of my business and others I’m sure.
“How useless is £1,100 over a year – just £25.15 a week – and not even coming in until April 27!
“A more meaningful intervention would be a hospitality VAT reduction from 20% to 10%.
“That’s the only way he can help hospitality survive.”
The national campaign #VATsTheProblem led by celebrity chef and publican Tom Kerridge highlights how hospitality cannot reclaim VAT at source for most of its core purchasing.
It calls for VAT to be cut to 10% for hospitality – and so far 294,648 have signed an online petition.
Darren said: “Every pub has its own story to tell.
“In Nantwich ours is a little different as support from regulars also helps preserve a piece of town heritage.
“The Black Lion has seen spells where previous landlords just couldn’t make it work due the upkeep of such an old building.
“We’re incredibly grateful for the support we receive and will do everything we can to keep our doors open.”
The pub, dated 1664 above the door, is believed to be older by local historians – mid-to-late 1500s due to its architectural features.
Accolades include being CAMRA rated and featured in the real ale enthusiasts’ Good Beer Guide on many occasions since digital records began.
This week’s Best Pubs UK guide released by The Telegraph praises the ambience and friendly regulars who love to chat.
Darren said: “Getting this recognition was wonderful, a really special moment for us.
“Sadly it coincided with the PM’s announcement. We won’t let that take the shine away though.”
Back in May, more than 60 hospitality businesses in Nantwich got together to demand a cut in VAT, signing a petition handed over to Crewe and Nantwich MP Connor Naismith.
To get behind #VATsTheProblem go to https://www.vatstheproblem.co.uk/
Totally agree, £1K over a year is pathetic to assist hospitality outlets. Knee jerk reaction by Burnham to be seen as doing something. Same as removal of VAT on electricity, money better in our pockets, but it isn’t a substantial help.