CP
A major British pub operator has fallen into administration days before Rachel Reeves is due to outline a rescue plan for the struggling hospitality industry, placing more than 3,000 jobs in jeopardy and intensifying criticism of Labour’s handling of business taxes.
The Revel Collective, owner of dozens of venues nationwide and best known for the Peach Pubs brand, has formally collapsed after repeatedly warning that Labour’s fiscal policies were squeezing operators to breaking point.
Administrators are now circling 62 sites, including over 20 Peach Pubs locations. The group also controls the Revolution bar chain and the Latin themed Revolucion de Cuba brand, both of which have expanded rapidly in city centres over the past decade.
FINANCIAL STRAINS COME TO A HEAD
Revel, previously called the Revolution Bar Group, has endured a bruising period of trading, recording losses of £36 million across the last four years. Those difficulties, already severe, worsened sharply following a series of tax rises announced by the Chancellor.
Higher employer National Insurance contributions, increased business rates and a hike in the minimum wage have all landed on operators already battling rising energy bills and subdued consumer spending. Revel had previously condemned the measures as punitive, arguing that they burdened hospitality firms while offering little prospect of long term growth.
In company statements issued before its collapse, the group complained that the changes were regressive and threatened jobs, a warning that has now materialised for thousands of staff.
GOVERNMENT UNDER FIRE OVER PUB CLOSURES
Mounting alarm over the fate of Britain’s pubs has reportedly forced the Treasury to draft an emergency support package, expected to be unveiled this week. The plans surfaced shortly after a high profile media campaign called for urgent action to prevent further closures.
Figures from tax advisory firm Ryan show that the UK lost roughly one pub every day last year. With recent reforms to business rates still filtering through, operators fear the pace of closures could accelerate.
Industry body UKHospitality has estimated that, without intervention, the average pub’s tax burden could rise by 76 per cent over the next three years. Since Labour entered office in July 2024, more than 500 pubs have already shut their doors, while another 540 are forecast to close this year unless ministers change course.
Critics say the looming bailout only underlines how badly the sector has been damaged under Reeves’s watch, with many operators accusing the Government of reacting too late.
STUDENT SPENDING AND SHARE SUSPENSIONS
Revel’s problems were not limited to taxation. The group has also struggled with shifting habits among younger drinkers, particularly Gen Z students who have been cutting back on nights out amid a prolonged cost of living squeeze.
In 2024, the company briefly suspended trading in its shares while attempting to raise fresh capital. Chief executive Rob Pitcher said at the time that students had been hit especially hard financially, curbing demand at late night venues.
The firm also calculated that Labour’s decision to lift employers’ National Insurance would shave around £4 million from annual profits, a blow it said would directly affect investment and staffing levels.
Mr Pitcher warned then that the Government’s Budget choices, especially lowering the threshold at which firms begin paying National Insurance, would inflict serious damage on hospitality businesses and destabilise the labour market.
TRADING CONTINUES AS ADMINISTRATORS MOVE IN
Shares in Revel have again been suspended, with the company acknowledging that a return to trading was “very unlikely” before administrators formally take control. Despite the collapse, management said venues would remain open for now in an attempt to protect value for creditors, employees and other stakeholders.
For thousands of workers across its pubs and bars, the timing could hardly be worse, and for Labour the failure adds another uncomfortable headline as Reeves prepares to present her long awaited package for an industry many say has already been pushed far too far.
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