A well-known Hackney pub is among those worried about a potential business rates rise as the upcoming Budget looms.
Egil Johansen, the owner of The Kenton Pub, says he is fearful about the impact of a big hike in the property tax next year.
At the moment, pubs are among the businesses that benefit from a 75% discount on business rates up to a limit of £110,000, but this is set to end in April, when the tax will rise with inflation.
Pubs across London have now called on the Chancellor to further extend this relief to prevent more boozers from shutting down.
Egil said that the potential tax hike is just one of many challenges facing pubs in Hackney.
He explained: "Our next rent review is in five years, and if it increases by the same amount, that will definitely be the end for us.
"The massive increase in utility bills has been hard to swallow; that’s why we closed our kitchen in 2022.
“We are also suffering from rising mortgage interest rates and increasing beer prices.
"Even Sky Sports and TNT Sports are dramatically raising their subscription fees, which means we might have to stop showing football because of that.”
Many independent venues have now joined forces with CityStack, a scheme that offers punters discounts at member pubs to try and help them stay afloat.
The company's founder, Alison Boutoille, said: "Our independent pub owner members are extremely concerned about next week’s Budget, particularly about additional business rate hikes and the threat of higher property taxes.
"While big chains may be well equipped to weather the current economic situation, it’s much harder for independent businesses to keep themselves afloat, which is why we created this initiative. We urge people to go back to independent pubs before it's too late."
The Treasury declined to comment on what might be presented by the Chancellor at next week’s Budget (October 30).
A government spokesperson said: “We’re supporting businesses like our well-loved pubs through pledges to make the business rates system fairer, cap corporation tax at 25% and to publish a corporate tax roadmap so that they have some welcome certainty to plan for the future.”
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