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Licensees raise alarm as costs spiral for Newport establishments

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Licensees in Wales have described the nation’s public house sector as being in terminal decline.

On March 13, an ITV Wales This Week edition called The Death of Our Pubs? examined the harsh reality of mounting tariffs and how Welsh drinking establishments are fighting to survive.

Throughout the programme, presenter Rob Osborne toured three venues in Gwent: The Friendly Fox in Bassaleg, Newport; The Boat in Monmouth; and The Six Bells Pub in Wentloog, Newport.

Ben Periam, who runs The Friendly Fox in Bassaleg, offered a pessimistic assessment of the local licensed trade.

The programme disclosed that despite drawing healthy customer numbers, the popular establishment could not absorb the impact of the tariffs, leading to the agonising choice to shut its doors permanently.

He cautioned those considering entering the pub business today to think carefully before doing so, noting that people often come in naively and see only the romance of the industry without understanding the difficulties involved.

A recurring sentiment among publicans was one of mounting frustration and a sense of helplessness.

The Boat Inn’s proprietor, Mark Gardner, outlined the situation, describing how making a profit has become the hardest part of the business, with the past couple of years yielding no profit. He expressed disbelief that an industry can continue to be taxed in this way and questioned whether authorities are trying to put pubs out of business.

A 75 percent business rates hike—from £8,000 to £14,000—affected The Boat Inn, underscoring the magnitude of the problem and the worry surrounding the fresh tariffs.

Approximately 4,400 hospitality enterprises will qualify for a 15 percent reduction on their rates bills in 2026–27 to assist them through escalating expenses and shifting consumer behaviour, in response to the tariffs.

Even with this support, many establishments will still face considerably elevated costs and difficulties.

During the segment, Rebecca Evans MS, Cabinet Secretary for Finance, responded to criticism, defending the relief scheme. She acknowledged that the revaluation has been difficult for some businesses, noting that many have seen their bills fall but others have seen them rise, and that the funding provided is not insignificant.

Yet Wales’s First Minister, Eluned Morgan, contends that the public must do more to stimulate the economy.

She suggested that people need to stop purchasing wine at home and instead visit pubs, stating that this is the reality of the situation and that the state cannot be expected to step in and do the work that the public should be doing.

Responding to her remarks, Mark of The Boat Inn said he found the comments incredibly rude, pointing out that they are a busy pub and that customers are not the issue. He explained that the real problem lies with the extremely small margins the business operates on.

Another notable issue raised was that Welsh pubs were paying more than their English counterparts, and The Boat Inn, situated on the England-Wales frontier, could potentially have faced lower costs had it been located across the border.

David Chapman of UK Hospitality observed that Wales is worse off in many places compared to England, using The Boat Inn as an example of how a venue just across the road could be approximately £3,500 better off. He cited the example of an average-size pub, which would be paying £12,501 in Wales compared to £10,329 in England.

On the England-Wales cost disparity, Rebecca Evans MS, Cabinet Secretary for Finance, noted that it costs more to do the same thing in Wales due to the nature of the tax base and the greater reliance on small and medium-size businesses compared to England.

Optimism now centres on community ownership, as the programme also showcased Newport residents striving to convert a disused rural pub into a vibrant community focal point.

Amanda Renolyds, coordinator of the Save the Six Bells Campaign, explained that the project is about more than just the building—it represents a regeneration of the area, which currently looks very sad with the property boarded up. She expressed hope that creating a community hub would generate a sense of pride in the area with a positive impact not just on the pub itself but on the wider neighbourhood.

Speaking about community-owned establishments’ track record, John Lamb of CAMRA Wales observed that most community buyouts tend to be successful with few closures, attributing this to the fact that as a community asset, residents have a greater interest in visiting and maintaining such venues.

The broader picture for Welsh pubs appeared bleak.

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