12/06/2026
"no business should be expected to carry one of the highest tax burdens in Europe while facing relentless cost increases on every front"
https://www.vatstheproblem.co.uk
James May has sparked debate by suggesting that pub closures are primarily a quality issue, arguing that “the good pubs survive and the bad ones fade away.”
To a degree, he’s right. Great pubs don’t happen by accident. Good service, clean facilities, quality drinks, a welcoming atmosphere and adapting to changing customer expectations are all essential ingredients for success.
But where we part company is the suggestion that quality is the main issue facing the industry.
Across the UK, there are thousands of well-run, popular pubs delivering excellent customer experiences every day, yet many are still struggling to remain profitable.
The reality is that even the best operators are battling soaring employment costs, rising National Insurance contributions, energy prices, food inflation, business rates, beer duty and VAT. Industry leaders have repeatedly warned that these pressures mean even busy, successful pubs are finding it increasingly difficult to make the numbers stack up.
A perfect example of the pressures facing hospitality is Jeremy Clarkson’s Farmers Dog pub. Despite massive publicity, nationwide interest and tables reportedly booked solid, Clarkson himself has openly admitted the business is still losing money. If a venue with that level of exposure and demand is struggling to turn a profit, it shows just how difficult the current climate is for pubs across the country.
This isn’t simply about whether a pub is “good” or “bad” anymore, it’s about whether the economics of running hospitality businesses in Britain are sustainable at all.
The Independent Pub Alliance believes quality and government policy are not mutually exclusive. Pubs should absolutely strive to be the best they can be. But we should not ignore the fact that excessive taxation and rising operating costs are placing unsustainable pressure on businesses that are otherwise thriving.
Good pubs can survive difficult conditions. Great pubs can even flourish. But no business should be expected to carry one of the highest tax burdens in Europe while facing relentless cost increases on every front.
If we want Britain’s pubs to remain at the heart of their communities for generations to come, we need both excellent operators and a fairer trading environment.