Struggling pubs offering cheap stews after Labour’s tax raid prompts desperate cost-cutting

PUBS are offering cheap stews as ­Labour’s tax raid forces desperate cost-cutting, an industry leader has claimed.

Struggling venues are cutting back menus and opting for cheaper ingredients to stay afloat, UKHospitality chief Kate Nicholls said.

She explained: “People have been changing their menus.

So they have gone down to two or three dishes rather than having a choice of ten or 12.

“Cheaper cuts of meat and cheaper ways of cooking it.

"So there’s a lot of stews and a return to sort of pies, away from some of the more expensive items.”

She said other cost-saving measures include scrapping table service to cut down on staff.

Ms Nicholls described Rachel Reeves’ Budget as “a real hammer blow for the industry”.

She said the financial squeeze brought about by the halving of the national insurance contributions threshold has been compounded by soaring wage bills and reduced business rates relief, adding: “Collectively, it’s a £3.4billion tax hit.”

Ms Nicholls also stated: “This is the most regressive tax change that’s ever been introduced and we would urge them to think again.”

The Treasury said a lower business rate would be introduced in 2026 to help protect pubs.