Britain’s pub industry is at ‘breaking point,’ says boss

By the Editorial Team · Wednesday, October 21, 2026

Greene King's CFO Jonathan Fearn warned that rising taxes, wage costs, and utility bills are severely straining the British pub industry, which has faced £400 million in additional expenses since 2019. He urged Chancellor John Healey to cut business rates, reduce VAT, and address National Insurance contributions in the upcoming Budget to help pubs stabilize financially and support youth employment.

The British pub industry is facing significant financial strain due to rising taxes and employment expenses, according to Jonathan Fearn, chief financial officer of Greene King, one of the country’s largest pub chains. Fearn attributed the pressures to recent government policies and urged Chancellor John Healey to take immediate steps to alleviate the sector’s mounting costs in the upcoming Budget.

Since 2019, Greene King has experienced an additional £400 million in business costs fueled by inflation, with hourly wages climbing by more than 60%. Simultaneously, utility bills for power and water have increased by 50%. The company currently pays £60 million annually in business rates across its 1,500 pubs, a substantial expense that Fearn and the British Beer and Pub Association say is exerting severe pressure on profit margins. Industry data shows that pubs earn an average profit of just 12 pence per pint, highlighting the vulnerability of operators to any further cost increases.

Fearn welcomed recent measures by Greater Manchester Mayor Andy Burnham, who implemented a 20% reduction in business rates for pubs early in his tenure, amounting to savings of around £1,100 per establishment. However, he cautioned that this relief is insufficient to offset rising wage costs and other financial challenges.

The hospitality sector has also raised concerns about the impact of employer National Insurance contributions introduced under the previous government, which they argue are hindering efforts to hire young workers—a key demographic for the industry’s labor supply. Fearn called on Healey to address youth unemployment and consider reversing some of these increases to support recruitment.

Furthermore, Greene King advocates for a cut in the hospitality sector’s value-added tax (VAT) rate from the current 20% to 10%, aligning with campaigns led by figures such as chef Tom Kerridge. Industry representatives contend that the VAT burden in the UK is disproportionately high compared to other European countries, exacerbating the difficulties pubs face.

Fearn urged the government to provide meaningful support to help pubs regain financial stability, emphasizing their role in communities and as entry points into employment for young people. “The industry is reaching breaking point,” he said, calling for coordinated government action to reduce costs and enable investment, recruitment, and growth across the sector.

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