Pub in Peril: Families Take to the Frontlines as Financial Struggles Mount

In Port Talbot, the harsh reality of the pub industry is hitting home for James Graham, who has resorted to enlisting his own children to work at his pub, The Tyn Y Twr Tavern, due to spiraling costs and staff shortages. James’s predicament reflects a wider concern among overburdened pub owners across Wales facing imminent increases in business rates that could cripple their finances even further.

The UK government plans to adjust the new business rates set to take effect in England, but similar changes are being urged for Wales amidst warnings from trade bodies. James is not alone—other pub owners like David Rowlands of North Star in Cardiff have also grappled with the financial strain, having worked 100-hour weeks to keep their businesses afloat.

Since James took over his pub five years ago, operational days have decreased from seven to just five, as he laments the challenges of running an “empty pub” without sufficient patrons. The lack of support and high costs, including skyrocketing electricity bills and multiple price hikes from breweries, leave little room for margin, with James claiming they barely earn 15 pence on a pint sold for £4.50.

Recent data from the British Beer and Pub Association highlights a troubling trend, revealing over 200 pub closures in Wales from 2019 to 2024. Wales experienced a closure rate of 6.6%, noticeably higher than England’s rate, exacerbating fears that the nation’s cultural heritage could be lost as beloved local pubs shut their doors.

With impending changes in April regarding business rate discounts, which will slash current relief from 75% to 40%, there is an urgent appeal for the Welsh government to adopt a compassionate approach similar to plans rolling out in England. Emma McClarkin, from the BBPA, emphasizes the need for an immediate review of these proposed changes to prevent many pubs from facing impossible operational challenges.

In response, the Welsh government has assured that substantial rates relief is already in place, with over a quarter of all pubs expected to pay no rates. However, pub owners like James and David contend that these measures may not be sufficient to offset the crushing taxes that have saddled them.

Despite the disheartening circumstances, both James and David highlight the integral role pubs play in their communities, providing not just a service, but a space for social connection and cultural events. For James, the dream of managing a family-run pub has turned into a challenging balancing act between business and family life, reflecting broader struggles faced by many in the hospitality sector.