‘I’m a pub landlord - I’m closing 3 days a week to lose less money’

Steve Novak of Stanleys of Streatham

A landlord has warned that Labour’s tax hikes could force his pub to join the two boozers shutting their doors every day in Britain. Steve Novak, 49, who owns several venues in London including Stanleys of Streatham, began closing the pub during daytime hours from Monday to Thursday last month in a bid to “lose less money”. Mounting operating costs have seen the pub’s outgoing costs trump its profits and thrown its future into doubt after just two years of trade, mainly due to hikes of the National Living Wage and a 68% increase in business rates.

The sector is effectively “haemorrhaging” money to the Government while footfall drops because of post-pandemic lifestyle changes and the rising cost-of-living disincentivising spending, he told the Express. The 49-year-old also dismissed Chancellor Rachel Reeves’ effort to support pubs by offering 15% business rates relief as a “PR tactic” designed to convince the public the issue is being addressed without evaluating the extent of the crisis.

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Pubs across the UK are struggling to make ends meet amid hiked running costs

His concerns reflect wider industry trends, with the British Beer and Pub Association (BBPA) warning that the number of pub closures in Britain over the first three months of 2026 averaged two per day, equating to the loss of around 2,400 jobs.

Figures from the trade association show that 161 pubs closed across the country in the first quarter of the year, representing a 26% jump against the same period last year, with local boozers under pressure from rising labour costs, taxes and caution among consumers.

Mr Novak said: “I’m doing alright because I have a bar that does very well, but in terms of making a profit, I might as well bin the pubs off. I’ve run discounts, I’ve offered £5 pints, but we just can’t get trade up enough to offset the losses.

“It’s a sad thing to see all these places close. I can understand when market forces are behind it, but this isn’t market forces, it’s tax, plain and simple. Hopefully Labour will get their a***s handed to them in the local elections and it will finally sink in.”

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The Government announced business rate support for pubs following warnings that tax changes would lead to more closures and job losses, with the 15% relief coming into effect last month.

However, measures from last November's budget, such as the increase in the minimum wage to £12.71, still added a significant jump in business costs for pubs and brewers.

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The BBPA said the latest closure figures highlight a need for longer-term changes to business rates and a wider overhaul of taxes on the hospitality sector.

Chief executive Emma McClarkin said pub profits were being “wiped out by a disproportionate tax burden and huge costs”.

She added: “For too many, the sheer weight of taxes and regulatory costs have forced them to shut up shop, which will only hurt communities, workers and the wider economy.”

Ms McClarkin praised the Government for the rates relief scheme, describing it as “necessary” and a “welcome relief”, but also called for further, more concrete change.

“We want to work with the Government to establish a permanent long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this treasured sector,” she said.

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The number of pubs across Britain dropped by 336 to 44,656 last year, meaning more than 2,000 have closed since the outbreak of the Coronavirus pandemic in 2020.

A spokesperson for the Government said: “We are backing Britain’s pubs - cutting April’s business rates bills by 15% followed by a two year freeze, extending World Cup opening hours and increasing the Hospitality Support Fund to £10m to help venues grow. Later this year, we’ll also build on our Pride in Place programme with our new High Streets Strategy to revitalise our town centres later this year.

“This comes on top of capping corporation tax, cutting alcohol duty on draught pints and six cuts in interest rates, benefiting businesses in every part of Britain.”