The CEO of pub operator Shepherd Neame has criticised the government’s proposal to offer businesses £3,000 when they employ young benefit claimants, stating the plan is “crackers” in the face of rising taxes.
Speaking to the hospitality journal Propel, Jonathan Neame stated the measure fails to address the impact of employment costs, VAT and business rates levied on bars, pubs, and restaurants, which have brought the economy to a “standstill.”
“The sector is fundamentally saturated by tax,” said Neame. “While other European countries have supported their hospitality industry with measures such as reducing VAT, we have the highest rate in Europe. We have the highest employment costs in Europe. That’s why the unemployment rate is going up.”
“If we want to get the economy moving, then we need a different approach. We need a reset of the sector. We need the cost of employing people to be reduced, not be subsidised to take them on. It’s crackers to tax businesses in the way they have and then introduce such a scheme.”
Neame was speaking after the release of Shepherd Neame’s interim results, which revealed “strong” weekday footfall, while weekend trade is “better than it used to be.”
Originally published on Coinslot on March 30, 2026. Republished with permission.