Ipswich pubs pour millions into economy, but face sobering costs

The big picture: New data from the British Beer and Pub Association (BBPA) shows that the East of England beer and pub sector contributed more than £2.8 billion in GVA, an economic metric that measures the value of goods and services produced in a specific area, industry, or sector, and generated more than £1.2 billion in tax.

Despite that, pubs have faced monumental challenges with widespread closures across the town, county, and country in recent years.

Why it matters: Pubs play a vital role in shaping Ipswich's identity, culture, community, and economy, but many struggle to balance costs with keeping prices down for customers.

• The average pub makes just 12p profit per pint after taxes and costs

• Pubs have already had to overcome COVID-19 and a sharp increase in energy costs

• Publicans are now faced with a potential smoking ban in beer gardens

• Further pub closures could impact Ipswich's social fabric and reduce local tax revenues

What they're saying: Sally Goodger, Manager of The Duke in Ipswich, said: "Running a pub at present is a balancing act between controlling costs and creating a thriving business. As publicans we have always been proud to be a place where people can socialise regularly without breaking the bank - one of the cornerstones of the great British pub and all the landlords and ladies I know are in the business to make a living, not a killing!"

She added: "If we see another significant increase in any costs, such as business rates, many pubs will simply not be able to manage that balance. We also have one of the highest VAT rates for hospitality in Europe, which directly impacts on prices for our customers."

What's next: The BBPA is calling for government support in the upcoming Budget, including:

• A cut in beer duty

• Business rates reform

• Maintaining 75% business rate relief for pubs

Emma McClarkin, CEO of the BBPA, said: "The East of England sector's growth will underpin economic growth, which is why if the Government truly is business-friendly, it must recognise that pubs and brewers are shouldering multiple taxes and costs that are squashing growth and could lead to businesses failing."

The bottom line: Without action to reduce costs and taxes, Ipswich pubs may struggle to keep prices affordable, potentially leading to closures and impacting the town's economy and cultural identity.