Pub owners believe outdoor smoking ban would risk closures

A recent survey from the British Institute of Innkeeping (BII) of licensees running independent pubs across the UK showed a majority of operators are concerned about the government’s proposed outdoor smoking ban.

Full details of the proposal have yet to be confirmed but it forms part of wider plans to crack down on use of tobacco and vapes across the board.

Responding to last week’s news, 62% of BII’s surveyed members said the ban would significantly impact their trade and a further 20% believe it would result in the closure of their pub.

Just 7% of respondents said there would be little or no impact to them if the ban came into place, with some not having outside spaces to manage.

BII CEO Steve Alton said: “At a time when members are seeking reduced restrictions, legislation and cost of doing business, it is unwelcome that the government is considering unnecessary restrictions such as banning smoking in pub gardens – our members have indicated for one-in-five this could lead to business failure and for the vast majority there would be a significant impact to their business-critical trading levels.”

The survey also indicated that despite trading being positive for many over the summer months, the impact of high costs in every area of their businesses has hampered profitability, with only one in four making a clear profit.

Just under one in two have broken-even over the summer, with a further one in four making a loss over this period.

Positive impacts from major sporting events have been countered by a “lacklustre summer”, and high energy, staffing and food and drink costs are still affecting the venues.

Alton added: “The appetite of the public to visit our fantastic pubs has clearly returned to pre-pandemic levels for many of our members, but they continue to face a raft of cost challenges, having to boost trade significantly just to stand still.

“Despite these challenges, many tenacious operators have managed to increase or maintain their trading revenue, by working hard to develop their offers to attract customers new and old to their pubs, also putting on events and festivals and fundraising for local causes, giving people many reasons to visit their pub.”

Alton further called for the government to work with the pub sector to “rebalance the unfair tax burden” he feels the segment has faced for decades, endorsing a reduction in VAT on all pub sales, cutting alcohol duty and continuing business rates relief until the rates system is reformed.

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