much reduced opening times, which in turn limits their ability to spread their overheads.
The situation is particularly impacting on job prospects for the younger generation. Andrew warns: “Young people will find that hospitality, a traditional route into their first job for many, will be closed.
“You cannot pay £20,000-plus per annum for someone to serve teas and coffees, when you take the training and uniform and other costs into consideration.
“Let’s hope the government sees sense, although I expect it is already too late.”
James Warburton is the owner and founder of Bowland Inns and Hotels, the Lancashire headquartered premier hospitality group that operates under the James’ Places brand.
Founded in 1996, the group specialises in country pubs with rooms, restaurants and luxury wedding venues. Its portfolio includes Eaves Hall, Mitton Hall, The Shireburn Arms and The Waddington Arms in the Ribble Valley.
The business was also behind the transformation of Holmes Mill in Clitheroe into a leisure destination that includes a boutique hotel, a cinema, the Bowland Beer Hall and the Bowland Brewery.
In common with businesses across the sector, the national insurance hike, minimum wage increases and rising business rates are having an impact.
The food hall at Holmes Mill is currently being reduced in size and is being replaced by an
increased ‘competitive socialising’ offer with darts, bowling and other attractions.
James describes it as swapping a low margin, high-cost business for a higher margin, lower operating cost one that will take fewer people to staff.
Food hall staff have been deployed to different locations in the mill and there will be no enforced job losses.
He reveals that the impact of Rachel Reeves’ first Budget was to increase costs by £900,000. Now there is the added burden of a rising rates bill. “It’s just another shock to the system,” he says.
The business is paying £3,000 a week in rates just for the beer hall at Holmes Mill. One of the group’s hotels in the South Lakes has seen its rates bill soar by 75 per cent.
With 454 workers on the payroll, Bowland Inns and Hotels’ wage bill is just under £7m. The company, which has a turnover of £27.5m pays around £1.25m in national insurance. There’s also the matter of an annual VAT bill in the region of £3m.
James says the rise in costs has made life difficult but adds that smaller pub businesses that don’t have scale have found it even harder. And when it comes to the group’s brewery operation and the taxes it faces, he says: “The challenges are enormous”.
The current climate is also making it harder for the industry to employ young people.
Continued on Page 8
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