Worcester Publican Closes Alma Tavern, Blames 'Crippling' Costs

A Worcester publican has closed the doors of The Alma Tavern after seven years, letting 14 or 15 staff go and handing the business back to owner Star Pubs amid what he called a "crippling" tax and cost burden.

Jon Dean told the BBC this week that the economics of running the Worcester pub had become impossible. He and his team had fought to keep the venue open through successive shocks.

"We've been trying to keep it going but there's no light at the end of the tunnel," Dean said. "I've tried everything to keep the pub going, but it's like flogging a dead horse."

What went wrong at The Alma?

Dean, who lived above the pub, said the venue's £800,000 annual turnover could not absorb the fixed bills. "A place like this turns over maybe £800,000 a year, but once you've paid out your taxes, your energy bills, your wages, it's pretty much all gone."

He blamed a stack of pressures:

• The utility crisis
• The cost-of-living crisis
• The war in Iran
• Employer national insurance contributions
• Rising minimum wage
• VAT
• Business rates

"All of that pressure has crippled us," Dean said.

Where did the customers go?

The publican reported a step-down in trade. "People used to come in four or five times a week and they'd have four or five pints, but those days are gone," he said. Regulars now visit once or twice a week and order a drink or two. "People just haven't got the money."

Star Pubs owns the freehold and leases the venue to Dean as an independent operator. A spokesperson said: "While Star Pubs owns The Alma Tavern, it is leased to an independent operator who runs it as their own business and has taken the decision to close the pub." Dean said he now has to find a new home.

What is the government doing?

In July, the government cut business rates for pubs by 20%. A Treasury spokesperson defended the move as live support. "The chancellor has prioritised support for the hospitality industry in his first week in the job when he cut business rates by 20% for pubs, social clubs and live music venues, saving thousands of [pubs] over £1,000 a year." The spokesperson also pointed to a tax break on poured pints and a corporation tax cap.

The Prime Minister previously called the rates cut "the first step" to help the industry, according to the same spokesperson.

Is the wider sector at risk?

Last month, more than 800 businesses — including top UK chefs — wrote an open letter to the Prime Minister. The signatories warned that without a VAT reduction, more pubs and restaurants would shut.

Allen Simpson, chief executive of trade body UKHospitality, said the tax burden for the sector had "grown disproportionately" in recent years. "We have already seen promising signs from the new government in its approach to hospitality — I hope this (forthcoming) Budget will see further backing for the entire hospitality sector," Simpson added.

What is the Budget likely to deliver?

Dean called on the government to consider new tax cuts for hospitality venues or face more pub closures. The Chancellor's forthcoming Budget now sets the test for whether the July rates relief marks the start of a sustained fiscal reset — or a one-off political gesture — for an industry that UKHospitality says is already buckling.