Fuller’s executive chairman Simon Emeny has launched a fierce attack on the Labour government, blaming excessive taxation and regulation for the closure of 5,800 pubs over the past decade.
Emeny, who leads Fuller, Smith and Turner, directed his criticism at government hikes to business rates, national insurance contributions, and alcohol duty affecting the pub sector.
“When I reflect on the changes seen in our sector over the past 10 years, it has been a period of unprecedented government interference, additional taxes and regulations,” he said.
The pub boss also took aim at Labour’s apprenticeship levy, Extended Producer Responsibility packaging tax, green energy taxes, the sugar tax, and the proposed holiday levy.
Fuller’s pre-tax profit slipped 13 per cent to £29.5m in the year to March, even as revenue bounced six per cent to £398m.
The company’s total tax burden jumped to £8m over the same period, though Fuller’s said it “mitigated” some of the effect of higher employment costs through “labour efficiency.”
Emeny warned that Labour’s Employment Rights Act proposals to crack down on flexible work and collective redundancy “add extra cost and bureaucracy” for hospitality businesses.
These new rules cause pubs, “that are famed for delivering part-time jobs for both younger and older workers, to rethink their hiring strategy,” he added.
The Fuller’s chief urged the government to review the tax burden on the hospitality sector, which employs 3.6 million people and contributes £96bn to the UK economy.
Despite the profit dip, Fuller’s reported like-for-like sales growth at its managed pubs in food at 3.5 per cent, drink at 5.8 per cent, and accommodation at 4.9 per cent.
The firm has seen sales grow 4.4 per cent year on year in the first 10 weeks of the new financial year, and plans to invest £30m into its pub estate.
Fuller’s is expanding its investment in historic properties, having recently completed million-pound upgrades at sites in Tower Hill and Waterloo.
Emeny expressed confidence heading into the summer trading season, noting that advance bookings for the World Cup have been strong and demand for staycations is benefiting the company’s rooms business.
“Our garden investment programme has seen fresh space created for peak trading, advance bookings for the World Cup have been strong, and we are seeing increased demand for staycations benefiting our excellent rooms business,” he said.
Rival pub chains Greene King and JD Wetherspoon have also flagged hopes for a sales boost from the World Cup this week.
Fuller’s operates nearly 400 pubs across London and the South East, including the Counting House on Cornhill, the Banker on Cannon Street, and the Saint on Bow Lane.
The company traces its origins to Fuller’s Brewery in Chiswick, which it sold in 2019, and its London-listed shares closed level at 656p on Tuesday.
FSTA stock has fallen more than eight per cent in the year to date, reflecting broader pressures facing the UK pub sector amid rising costs.