Inn-Valuable 2

Despite their importance to the national economy and the character of local areas, the policy and regulatory landscape in which pubs operate is increasingly counterproductive to the goal of providing long- term sustainability to the sector, even as the government has provided short-term measures of support. [...] While this may not be a prominent aspect of the economics of the pub trade, it is one of the most crucial elements of the social function which pubs play and must be factored into appraisals of the overall value of the sector. [...] The magnitude of the contribution and the relative ease of duties as a ‘lever’ for the Treasury are two reasons why much of the support given to the pub sector from central government has tended to come in the form of VAT and excise duty relief. [...] As a response to impact of business rates on the sustainability of businesses, particularly in light of the ongoing impact of the cost-of-living crisis and the lingering effects of the COVID lockdowns, central government have repeatedly instituted measures to discount the actual rates paid by businesses, with the gap in local revenue collection picked up by the Treasury. [...] Some of the interviewees talked about the challenges of keeping customers coming through the door in the current economic climate, and the need for pubs to ‘do more’ in order to satisfy the local market.