Pubs to open late during World Cup – a life raft for hospitality?
Though the Labour government and the country’s thousands of pub landlords have very rarely seen eye-to-eye in recent months, the World Cup could bring a summer truce to this fiery dispute.
Hospitality trade bodies and one of the country’s biggest pub chains have told CityAM they welcome the government’s move to allow pubs to open until 2am during the home nations’ knock-out games at this year’s FIFA World Cup. But one of the government’s fiercest opponents in its pubs row has said he remains unconvinced.
Announcing the plans to allow late pub closure during the tournament, which kicks off in June, home secretary Shabana Mahmood waxed lyrical, pledging to give “red tape the red card”.
“With later kick-offs at this year’s World Cup, we don’t want to blow the final whistle before the winning goal,” she said.
Following a six-week consultation, Mahmood granted legislative powers to allow pubs in England and Wales to stay open until 1am for knockout games, and until 2am for the 10pm kick-offs.
The move will appear to some as a bald attempt to placate a pub industry which has rivalled farmers in their open distaste for the Labour government in recent months. A row erupted after changes to business rates made at the November Budget resulted – inadvertently, so claimed the business secretary – in ballooning tax bills for thousands of British pubs.
The average UK pub faced a £1,400 rise in its business rates bill, according to trade body UKHospitality, which, combined with national insurance hikes, increasing employment costs and the end to pandemic-era tax relief, pushed pubs to breaking point.
One landlord, Andy Lennox, co-ordinated a campaign – endorsed by hundreds of pub owners – to bar Labour MPs until they offered support to the hospitality industry. Last month, the government finally ceded delivering a £300m emergency relief package for pub business rates.
An olive branch?
Hospitality trade bodies seem willing to move on from this bitter row and accept Labour’s World Cup olive branch. Kate Nicholls, chair of UKHospitality, told CityAM the extended opening hours will “create a brilliant atmosphere” for England and Wales supporters.
She said: “With the World Cup fast approaching, pubs and fans alike will be delighted to know they’ll be able to get behind the home nations and cheer them on from their local this summer.”
The British Beer and Pub Association (BBPA) also welcomed the move, with chief executive Emma McClarkin telling CityAM this policy is “crucial” to allowing Brits to enjoy the World Cup.
But she signalled there is more work to be done in the Labour’s attempts to ease tensions with the sector. She said: “We look forward to working with government on regulatory reforms alongside critical changes to tax, long-term business rates reform and cuts to beer duty and VAT, which will all help reduce the high costs of doing business.”
Simon Dodd, chief executive at Young’s & Co which operates nearly 280 pubs in London and the South East, said its sites will be taking advantage of the new rules to show every minute of the tournament.
Welcoming Mahmood’s decision he told City AM: “Major sporting events such as the FIFA World Cup represent vital trading periods for our sector, driving significant footfall and spend across both food and drink, whilst reaffirming the pub’s role as the home of live sport in communities across the country.”
Pub chains Wetherspoons and Nicholson’s both said they have not yet decided which of its pubs will be able to open later during the tournament.
£100m boost for pubs possible
As well as offering an easing of tensions between pub owners and the government, the policy could bring up to £100m extra cashflow into the hospitality and nightlife sector, according to Dr Samir Alamad, a senior lecturer in finance at Coventry University.
The longer opening hours will offer much-needed stimulus for the struggling sector and protection for zero-hour workers, and have a wider effect on other sectors like transport and food suppliers.
He said pub owners may use the World Cup as a basis to push for more permanent deregulation, if it can be shown to give a significant boost to landlords’ bottom lines. But Dr Alamad conceded that some independent pubs will not be able to afford to stay open longer, and so miss out on the extra footfall.
“Some will not be able to cope but the majority will. [The measure is] aimed at the wider sector, but that doesn’t mean every pub will benefit in the same way from this policy relaxation,” he said.
‘It’s complete spin’
But Lennox, who barred Labour MPs from his pubs and restaurants in December, remains unconvinced. The focus on longer opening hours is meaningless because Brits no longer want to stay out late, he claims: “By the time nine o’clock comes, everyone wants to be in bed.”
Lennox told CityAM landlords can apply for temporary event notices (TENs) to open later, meaning they have no need for emergency legislation: “They’re not doing anything for us. We’ve always got that power,” he said.
“It’s complete spin. […] People’s habits have changed, and if the government actually listened to the industry rather than going off and doing whatever the hell they think we want them to do, they would know that,” he said.
The Home Office was contacted for comment.