{"id":396406,"date":"2026-01-07T00:55:12","date_gmt":"2026-01-07T00:55:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/396406\/"},"modified":"2026-01-07T00:55:12","modified_gmt":"2026-01-07T00:55:12","slug":"theres-a-risk-labour-is-doing-to-us-what-thatcher-did-to-the-miners","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/396406\/","title":{"rendered":"\u2018There\u2019s a risk Labour is doing to us what Thatcher did to the miners\u2019"},"content":{"rendered":"

Few companies can claim to have weathered the ups and downs of British history quite like Shepherd Neame. <\/p>\n

Established in 1698 in Faversham, Kent, the brewer \u2014 Britain\u2019s oldest \u2014 has survived two world wars, the Great Depression and countless changes of government. It has seen the rise and fall of the British Empire, lived through the Industrial Revolution and adapted to everything from the temperance movements of the 1890s and 1920s to the smoking ban of 2007. <\/p>\n

But Jonathan Neame<\/a>, the fifth-generation family member who has been chief executive of his family\u2019s brewing and pub business since 2003, believes the pub sector is now at one of the most critical points in its history.<\/p>\n

\u201cI think there is a real risk that Rachel Reeves is doing to our sector what Margaret Thatcher did to the miners,\u201d he says, from a cosy armchair in Shepherd Neame\u2019s Tom Cribb pub, just off Leicester Square in central London. <\/p>\n

Where Thatcher\u2019s policies accelerated the decline of an industry many viewed as economically unviable, Neame argues that the chancellor is effectively destroying pubs that are \u201cwhat people and communities want and need\u201d and what Britain leads the world in delivering. <\/p>\n

Publicans are no strangers to navigating challenges. Those that survived the pandemic have battled to absorb rising cost inflation in areas from energy to food and beer. More recently a marked jump in employment costs, following changes to employers\u2019 national insurance contributions and the national minimum wage made in Reeves\u2019s first budget in October 2024, has pushed many operators further towards the cliff edge. <\/p>\n

The hospitality sector shed an estimated 89,000 jobs in the first nine months following Reeves\u2019s maiden budget, according to an analysis of official jobs figures by UK Hospitality. The trade body predicts a further 100,000 jobs are at risk on the back of the chancellor\u2019s announcements on the minimum wage and business rates, outlined in November\u2019s budget. The British Beer and Pub Association estimates at least one pub a day closed<\/a> across England, Wales and Scotland in 2025. <\/p>\n

Neame finds it difficult to put the situation into words. \u201cI don\u2019t know how to express it, but I think the dysfunctional decision-making [by government] that results in such bad policy is socially, morally and economically wrong.\u201d <\/p>\n

He adds: \u201cIf 89,000 people in one factory lost their jobs, every single government minister would be down there to throw subsidies at it. But with pubs, it\u2019s like we are a nuisance that has to be solved or put in a box by the government.<\/p>\n

\u201cYou just need to turn the handle and growth will flow out of our sector.\u201d<\/p>\n

It is easy to understand why Neame is so furious. When your family has been brewing beer and serving pints for over three centuries, and when you are the fifth generation to steward that legacy, threats to the industry may feel existential. <\/p>\n

Neame qualified as a barrister and spent four years working for a management consultancy in the City before joining the family business in 1991, a pivotal moment when the brewing industry was broken up under what were known as the Beer Orders. These limited the six national brewers, including Whitbread, to owning no more than 2,000 public houses each.<\/p>\n

\"Jonathan<\/p>\n

Neame: \u201cIt\u2019s like we are a nuisance that has to be solved or put in a box by the government\u201d<\/p>\n

JOSHUA BRATT FOR THE TIMES<\/p>\n

\u201cAll these pubs suddenly came onto the market, which of course, led to a lot of regional brewers being able to buy and expand pubs, like ourselves,\u201d Neame says. <\/p>\n

Today Shepherd Neame runs more than 280 pubs, which is the company\u2019s primary financial engine, making up 95 per cent of overall profits. For the year ending June 28, the company made a pre-tax profit of \u00a36.3 million on revenues of \u00a3164.3 million.<\/p>\n

While it has pubs in Surrey, Sussex, Essex and London, Shepherd Neame\u2019s heartland strategy is clear. \u201cKent itself is a vast county. It\u2019s shy of two million people and there\u2019s a lot of house building going on,\u201d he says, pointing to infrastructure developments such as the Lower Thames Crossing, which will connect Essex and Kent. <\/p>\n

Shepherd Neame has been deliberately shifting focus to the on-trade (sales through pubs and bars) from the off-trade (supermarkets and off-licences), which means supplying not just their own pubs but also local independent hotels and sports clubs. \u201cOwning that heartland in the on-trade is something that feels achievable because there will be a natural loyalty to us,\u201d Neame says.<\/p>\n

What about expansion outside of the southeast? \u201cIf you\u2019re in Yorkshire, you probably want a Yorkshire beer, don\u2019t you?\u201d he says with a smile.<\/p>\n

Neame is very aware that his pubs need to be of star quality, in terms of the overall experience, to lure in a more cost-conscious punter. \u201cThere is no doubt that going out is an expensive thing to do now, for all the reasons we know. People will go out less frequently, but when they go out they will spend and have a good time. Therefore we need to make our environments as good as they possibly can be.\u201d <\/p>\n

The post-Covid back-to-work bounce and the resurgence of inbound tourism spurred Shepherd Neame to focus its investment in London. The Westminster Arms, around the corner from St James\u2019s Park, reopened in March after a \u00a31.2 million makeover. This was followed by a \u00a3950,000 refurbishment of the nearby White Horse & Bower on Horseferry Road, which reopened its doors in October. <\/p>\n

In February, Shepherd Neame will unveil a refurbishment of the Hoop & Grapes in Farringdon, on the edge of the City, which started pulling pints around 1832. Neame reckons it will be \u201can absolute stormer\u201d.<\/p>\n

The stories and history are what makes pubs special, Neame says. He points out that the pub we are sitting in is named after the fighter and entrepreneur Tom Cribb, the \u201cMuhammad Ali of his day\u201d, who once owned the pub. <\/p>\n

He adds: \u201cI feel like we have got to an operational level that we could only aspire to a few years back, but that doesn\u2019t necessarily translate to the bottom line because there is so much going on elsewhere.\u201d<\/p>\n

As well as serving pints, Shepherd Neame operates hotels above many of its pubs, with the largest having 37 rooms \u2014 often an overlooked part of the business. It also runs brewery tours, another \u201cpoint of difference,\u201d which he says shows the Shepherd Neame brand \u201chas got those extra layers of depth to it\u201d.<\/p>\n

\"Jonathan<\/p>\n

Shepherd Neame is proud to still brew its own beer despite other big names falling by the wayside<\/p>\n

JOSHUA BRATT FOR THE TIMES<\/p>\n

A central plank of Shepherd Neame is its brewery. While the likes of Fuller, Smith & Turner <\/a>and Marston\u2019s have quit brewing, Neame is resolute, despite pressures facing the alcohol industry.<\/p>\n

\u201cWe see all the challenges in brewing but we also see all the opportunities,\u201d he says. \u201cBrewing is what we do. It\u2019s what we are famous for \u2026 we\u2019re very determined to keep going.\u201d<\/p>\n

Shepherd Neame reported a 9.2 per cent decline in total beer volumes last year, with its own beers, mainly cask ales such as Spitfire and Bishops Finger, falling 11.6 per cent. However, he acknowledges that the company\u2019s portfolio needs to align where there are growth trends in the market.<\/p>\n

In doing so, it has capitalised on the resurgence of Guinness, particularly among younger drinkers. Shepherd Neame launched its own Iron Wharf Stout in April and is also developing a new non-alcoholic beer for launch early this year. <\/p>\n

As the company, like its competitors, tries to evolve to cater for a new generation of drinkers, Neame reminds me that this is now \u201cso radically different to the business I joined\u201d. <\/p>\n

He adds: \u201cThe way people engage with pubs and different products is relentlessly changing, which means pubs are incredibly resilient to change and incredibly adaptable.\u201d <\/p>\n

The question now is whether the government will recognise the value of pubs before it is too late.<\/p>\n","protected":false},"excerpt":{"rendered":"Few companies can claim to have weathered the ups and downs of British history quite like Shepherd Neame.…\n","protected":false},"author":2,"featured_media":396407,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":{"0":"post-396406","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/396406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=396406"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/396406\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/396407"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=396406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=396406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=396406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}