UK Pubs Warn One in Five Will Close Absent Tax Cuts Ahead of Oct. 28 Budget

One in five British pubs will close unless the government cuts the sector's tax burden, the British Institute of Innkeeping (BII) warned Chancellor John Healey and Andy Burnham ahead of the Oct. 28 Budget. The group, representing 13,500 businesses, called for a reduction in VAT on pub sales to 10pc from the current 20pc. Only one in four pub operators turned a profit between January and August, the BII said. A fifth of members fear closure without tax relief, and two fifths said they would shut permanently if taxes rise again. The group said around 40p of every £1 spent in a pub now goes to the Treasury. The warning came as Rank, owner of Mecca Bingo and Grosvenor Casinos, said doubling machine games duty to 40pc could make about a third of its venues unviable, affecting roughly 2,000 UK workers. Betfred plans to close 132 betting shops, and Entain is consulting on 400 job cuts.