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An Ipswich publican has laid bare how employment cost increases will affect their business as industry bodies call for government action to protect jobs.
Why it matters: The Budget's increases in National Insurance Contributions will force local pubs to make tough choices between maintaining young workers' jobs and raising prices for customers, potentially affecting both employment opportunities and the cost of going to the pub in Ipswich.
The big picture: Pubs in the East of England have become a crucial employer of young people, with more than 48,000 under-25s now working in the sector – more than double the number in 2019, according to Oxford Economics research.
By the numbers:
70% of pub workers in the East are aged 16-24
National Insurance costs for young pub workers will jump from £82m to £153m nationally
This £71m increase comes as pubs already face rising costs across the board
On the ground: At The Duke on Woodbridge Road, owner Sally Goodger calculates these changes will add £2,000 to her annual wage bill.
"We hugely value our lovely staff – they're integral to the experience of visiting our pub," says Goodger. "We can't reduce our staffing levels easily, as during our busy times, we have to have all hands on deck to ensure customers have a good experience."
Between the lines: While pubs provide vital first jobs for young people, the industry faces a £500m increase in business costs, according to the British Beer and Pub Association (BBPA).
What they're saying: Emma McClarkin, BBPA's CEO, emphasises that pub work is "more than just a job," helping young people "build skills, grow in confidence, and fund university education or driving lessons."
Goodger agrees: "When you sit this aside all the other cost increases, we are left scratching our heads yet again at what we can do to absorb it, as we can't just keep raising prices. We really hoped this budget would focus on enabling businesses some breathing space to survive the continuing economic challenges, grow and invest, but it sadly feels like it has done the exact opposite."
The other side: While the government has acknowledged the industry's challenges, the BBPA argues more needs to be done regarding the timing of new employment costs and business rate reforms.
Bottom line: Without changes to how these new costs are implemented, Ipswich pubs may face difficult choices between maintaining staff levels and increasing prices for customers.
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