Angela Rayner’s new planning protections will not prevent pubs from shutting, industry figures have warned.
Under the Housing Secretary’s shake-up of the National Planning Policy Framework, property developers must now prove there is no reasonable prospect a pub can survive before it can be turned into flats or offices.
However, experts from both the construction and hospitality sectors said Labour’s reforms would not stop pubs closing in the first place, as landlords succumb to rising taxes, alcohol duties and soaring wage costs.
Allen Simpson, the chief executive of trade body UKHospitality, said the Government would need to go further to undo the damage done by Rachel Reeves, the former chancellor.
He said: “There has been an increase in the closure of hospitality businesses across the board over the last two years because of this Government’s actions.
“The fundamental and core point here is the cost of running the pubs in the first place, and I would encourage the Government to be more concerned about reversing the damage of the past two years than with concerning itself with what happens to the building after that pub has stopped being viable.”
There have been at least 1,836 pub closures since the start of last year, according to figures from the Campaign for Real Ale (Camra).
Jordan Connachie, the managing director of property developer Kori Construction, warned that Ms Rayner’s planning reforms would simply lead to “a load of empty pubs up and down the country”.
For every £1 spent at the bar, wet-led pubs are making only about 3p in profit, according to recent findings by comparison website money.co.uk, using data from the British Beer and Pub Association.
This translates to 16p for an average pint costing £5.17.
On top of this, alcohol excise duty has risen by 3.66pc this year, while National Living Wage and NI contributions increases are also adding costs.
“Planning designations don’t touch any of that,” said Mr Connachie.
“If the Government wants pubs to survive, the fix is in duty, business rates relief, and wage cost support – not in stopping a failing building becoming something that actually works economically.”
Steve Hesmondhalgh, a planning consultant, said protecting pubs through the planning system “sounds noble, but it is 20 years too late and aimed at the wrong problem”.
“All tougher restrictions will likely do is leave some buildings empty for longer, while owners wait for a pub use that no longer works,” he said.
“Would we rather have a dead pub or a building with a new life?”
