London pub owner warns budget tax hikes could force closure

A London pub owner has warned he may have to close if the chancellor raises taxes in this year’s upcoming Budget.

James Fitzgerald, landlord of the Thatched House in Hammersmith, said his costs have risen by £22,000 over the past year – with the increase in National Insurance a major factor.

He said he had already cut his own wage, reduced staff hours, and trimmed other running costs, and there was no more room to make savings.

“If it goes up again, eventually I’ll end up doing it for free and then I’ll have to pull out. There’s no way to survive.”

According to the British Beer and Pub Association, one pub a day is expected to have closed down over 2025. It warned that without extra government support, up to 2,000 could shut next year.

The association’s chief executive Emma McClarkin said pubs were “at a tipping point” after last year’s Budget added £650m to industry costs.

She described last year’s penny cut to draught beer duty as “a nice nod” but urged the chancellor to go further next week.

Industry leaders are also calling for meaningful business rates support.

Last week, the Financial Times reported chancellor Rachel Reeves decided against increasing Income Tax rates after better than expected economic forecasts.

But government sources said they still had to make “tough choices”, indicating other taxes could still rise.

Mr Fitzgerald said financial constraints meant he would not be putting Christmas lights outside this year.

“Our electricity bill is astronomical, and of course with Christmas it jumps – so we’ve decided to have a lot of sparkle but no lights.”

He has raised prices, but with customers also feeling the pinch, many have started visiting less, adding further pressure to his business.

He said pubs should be protected as they played an important role in combatting loneliness.

“It’s not all about coming in and getting drunk. It’s about popping in, having a cup of tea and chatting to your mate.”

A government spokesperson said pubs were “vital to local communities,” adding that ministers were lowering business rates, cutting alcohol duty on draught pints, capping Corporation Tax and reforming licensing rules.