Heartwood puts the Budget bill at almost £1.6m a year

Heartwood Collection says the Budget will add almost £1.6m to its yearly costs, The Morning Advertiser reports. Chief executive Richard Ferrier set out the numbers in LBC.

The numbers - The 3.9% rise in the national living wage from April 2027: about £1.44m on the wage bill. - Higher alcohol duty from February 2027: about £128,000 on cost of sales.

The rates split: the extra 20 percentage points of business rates relief for pubs from April 2027 helps Heartwood Inns, but not its Brasserie Blanc restaurants. Ferrier said that gap is hard to justify when both face similar staffing, energy and food costs. He wants relief extended to restaurants and hotels, and the missing VAT cut still stings.

The open question: he asked the Government to confirm whether bedrooms count for relief at pubs with rooms. The group is targeting 1,000 bedrooms.

Passing it on: Ferrier said the group cannot keep absorbing rising costs. Menu prices or employment could take the strain.

What it means for operators: if you run pubs with rooms or a mixed pub and restaurant estate, work out now how the relief applies site by site. Treat the rooms question as unresolved until it is clarified.