Spare us punishing costs, beg UK bosses

By the Editorial Team · Tuesday, October 20, 2026

Leaders from Greene King, Associated British Foods, and Castore have urged the UK government to provide financial relief in the upcoming Budget to address rising costs threatening their businesses and the wider economy. They warn that without measures such as tax reductions and energy cost support, sectors like hospitality and manufacturing could face closures, job losses, and a continued decline in entrepreneurial talent.

Business leaders from three prominent British companies have issued urgent appeals ahead of the upcoming Budget on October 28, warning that without financial relief, rising costs could threaten their operations and lead to a continued loss of entrepreneurial talent.

Jonathan Fearn, finance director at Greene King, one of the country’s largest pub chains, described the sector as being under severe pressure. He highlighted that inflation and increased expenses have significantly raised operating costs since 2019. Wages for pub employees have risen by 60%, utility bills by 50%, and overall expenditures have added approximately £400 million to the company’s outgoings. Despite the average price of a pint exceeding £5, Greene King reportedly earns just 12p profit per sale, a margin Fearn called unsustainable. He also noted the impact on employment, with a 20% decline in staff aged 16 to 20 compared to last year, underscoring challenges in recruiting younger workers. To alleviate these pressures, Greene King supports measures including a reduction of VAT on hospitality from 20% to 10%, a freeze on alcohol duty, and greater beer duty relief for pubs.

George Weston, chief executive of Associated British Foods (ABF), which owns brands such as Twinings and Kingsmill, stressed the need for government support to address soaring energy costs affecting the food manufacturing sector. He cautioned that Prime Minister Andy Burnham’s reindustrialisation plans may be undermined if the government neglects the industry's energy challenges, describing food manufacturing as the nation’s largest manufacturing sector.

Thomas Beahon, founder of Castore, a British sportswear brand, emphasized the broader economic risks if the government does not reconsider its approach to business and wealth creation. Writing on LinkedIn, Beahon warned that failure to act could accelerate the ongoing departure of skilled entrepreneurs from the UK, depriving the country of vital tax revenue and economic contributions. He suggested the Budget represents an opportunity for the government to reset its relationship with the business community.

The calls for support come amid a context of rising inflation, increased energy prices, and prior policy decisions—including tax increases and higher minimum wage requirements—that businesses say have contributed to a challenging environment. Chancellor John Healey faces constrained options amid soaring borrowing costs and public spending pressures, with speculation mounting about potential further tax increases.

Fearn also highlighted that pubs, often regarded as community hubs, are increasingly focused on survival rather than their social role, with one pub reportedly closing every day across the UK. He argued that without targeted support, the sector risks being unable to contribute fully to regional economic growth as envisioned by government plans.

Overall, these industry figures are urging the government to implement targeted fiscal measures in the forthcoming Budget to ease operational costs, maintain growth, and stem the outflow of talent critical to the UK’s economic future.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.