The Alma Tavern in Worcester has ceased trading this week, with its landlord, Jon Dean, attributing the closure to escalating operational costs and a downturn in customer spending habits. Dean, who ran the pub for seven years, stated that 14 or 15 employees have been made redundant.
Dean highlighted the impact of the utility crisis, the cost of living crisis, and the war in Iran on prices. He also cited employer's national insurance contributions, minimum wage increases, VAT, and business rates as significant pressures. He noted a change in customer behaviour, with people visiting less frequently and buying fewer drinks due to financial constraints.
The closure comes amidst ongoing calls for government support for the hospitality sector. In July, the government implemented a 20% cut in business rates for pubs. However, last month, over 800 businesses, including prominent UK chefs, wrote to the Prime Minister, Andy Burnham, advocating for a VAT reduction to prevent further closures. The Treasury maintains that pubs are already benefiting from the business rates cut, a tax break on poured pints, and capped corporation tax.