Pub giant slams “decade of government interference” as 5,800 pubs close across the UK
Key Points
- Fuller's executive chairman Simon Emeny has criticised "unprecedented government interference" in the pub sector over the past decade, citing around 5,800 permanent pub closures across the UK.
- Emeny pointed to rises in business rates, employers' National Insurance and alcohol duty, plus new taxes including the Apprenticeship Levy, Extended Producer Responsibility fees and the sugar tax.
- He linked higher National Insurance contributions for young workers to youth unemployment reaching 15%, and said the Employment Rights Act 2025 is forcing pubs to rethink hiring.
- Fuller's is calling on the government to introduce a lower VAT rate for hospitality, a sector employing 3.6 million people and contributing £96 billion to the UK economy.
- The comments came as Fuller's reported revenue up 5.7% to £397.8 million and adjusted profit before tax up 28% to £34.6 million for the year to 28 March 2026.
The boss of London pub group Fuller’s has attacked ten years of government tax rises and regulation, which he says have contributed to around 5,800 pubs across the UK closing permanently.
Simon Emeny, Executive Chairman of Fuller, Smith & Turner, made the comments alongside the company’s full-year results, published on Wednesday (10 June).
“When I reflect on the changes seen in our sector over the past 10 years, it has been a period of unprecedented government interference, additional taxes and regulations,” Emeny said.
He pointed to large increases in business rates, employers’ National Insurance contributions and alcohol duty, as well as a string of new taxes introduced over the decade.
These include the Apprenticeship Levy, Extended Producer Responsibility fees, energy and environmental taxes, the sugar tax and what he described as “the threat of a holiday tax”.
“These decisions come with consequences. Over the last decade the UK has lagged behind most developed countries for economic growth and, specifically in our sector, we have seen some 5,800 pubs close permanently, depriving communities of an essential asset,” he said.
Emeny also linked the rise in National Insurance contributions for young employees to youth unemployment, which he said has climbed to 15%, “creating another self-inflicted problem for society that the Government now needs to solve”.
He added that the Employment Rights Act 2025 has piled extra cost and bureaucracy onto pubs, which are known for providing part-time jobs for younger and older workers, forcing many to rethink how they hire.
Fuller’s said the National Living Wage and National Insurance increases that took effect in April 2025 added a further £8 million in annualised costs to its business alone.
The company offset much of this through labour efficiencies and selected price increases.
Call for a hospitality VAT cut
Emeny urged the government to cut VAT for hospitality businesses, arguing the sector generates returns for the Treasury as soon as it grows.
The hospitality sector employs 3.6 million people and contributes £96 billion to the UK economy, including £56 billion in tax receipts, he said.
“That is why we urge the Government to look at our sector’s tax bill, and deliver a lower VAT rate for hospitality, to kick start further investment and help take the country back into growth,” he said.
The criticism came despite a strong year for the company, which runs 185 managed pubs and hotels and 152 tenanted pubs across the southern half of England.
Fuller’s revenue rose 5.7% to £397.8 million in the year to 28 March 2026, while adjusted profit before tax jumped 28% to £34.6 million.
The company said advance bookings for this summer’s World Cup have been strong, and it plans to invest over £30 million across its estate in the coming year, including converting The Barrowboy and Banker pub near London Bridge into a 26-bedroom hotel.
