Chief executive criticises Chancellor ahead of budget
The chief executive of one of the UK’s largest pub operators has criticised the Chancellor for a “lack of clear plan” as the hospitality industry prepares for further tax increases in the upcoming Budget, reports BritPanorama.
Simon Emeny, executive chair of Fuller’s, argued the government requires “new ideas, new thinking” to achieve its economic growth objectives. “I hope the Chancellor has heeded the arguments and proposals articulated by the hospitality sector to avoid further punitive financial measures but, more so, I am frustrated by the lack of a clear plan to deliver the growth the Chancellor claims to be seeking,” Emeny said.
He noted that Fuller’s had already sustained an £8 million impact from the previous Budget’s National Insurance Contributions increases, which took effect in April. Increasing taxation combined with rises in minimum wages has contributed to a spike in hospitality insolvencies, as pub closures across Britain reached record levels in 2025.
The number of British pubs and bar businesses entering liquidation or administration jumped to 449 during the first 10 months of the year, marking a five per cent increase on the same period last year and more than triple the figure recorded in 2015, according to data compiled from insolvency disclosures.
Kate Nicholls, chair of trade body UK Hospitality, remarked that pubs and restaurants are still bearing heavy Covid debts, exacerbated by business rate and national insurance hikes from the previous Budget. “Put simply, these figures reflect what we’ve been saying to the Government and others for some time, the money coming through the front door is not enough to cover the costs of doing business,” she stated.
Last week, pub chain Wetherspoon warned of a “more cautious” outlook as the industry braces for further tax hikes. Tim Martin, founder and chairman of JD Wetherspoon, expressed that increased labour costs are dramatically widening the pricing differential between pubs and supermarkets, leading to frustration among customers.
Despite these challenges, Fuller’s reported a 6.9 per cent rise in sales for the six months to September, reaching £208 million, alongside a 16% increase in Christmas party bookings compared to the same period last year. The company, operating nearly 400 pubs in London and the South East, has increased its interim dividend by 6 per cent to 7.85p.
The firm also benefited from a £17.2 million gain from the sale of the Mad Hatter hotel in Southwark, which is set to be part of a new development on Blackfriars Road. Emeny took over as chairman of Fuller’s in July following the retirement of Michael Turner, a transition first reported by the Standard in March 2024.
Fuller’s shares saw a 0.5 per cent increase to 106p in early trading on Wednesday.
Current economic pressures on the hospitality sector highlight the delicate balance between taxation policies and business sustainability. As operators voice their concerns, the government’s ability to provide thoughtful fiscal strategies will be crucial in determining the industry’s resilience and growth moving forward.
