Brewer and pub firm Shepherd Neame says it hopes the government “is listening” to the challenges faced by the pub industry when Chancellor Rachel Reeves delivers her first Budget at the end of the month.

There has been much speculation as to what the government will do when she delivers her fiscal plan on October 30 - including a potential hike in beer duty.

But the Faversham brewer says it remains hopeful the Labour administration will deliver on its pre-election promise of a ‘five-point plan’ for pubs and that it will not include a hike in the price of a pint.

Explains its CEO Jonathan Neame: “There’s been a huge amount of speculation about different things that might impact business generally or our sector specifically. I think there's a degree of uncertainty about what is going to happen. There was a commitment to reform business rates which I think they have acknowledged are unfair and that could benefit the pub sector.

“We can't see any sensible economic case for higher beer duty. All the arguments are in favour of reform, simplification and reduction. And you know, I hope the government is listening because we've been saying this for a long time.”

The Faversham-based brewer, which operates 291 pubs across Kent and the South East, saw record revenues and a “good uplift” in profits in its financial figures for the year ending June 29, released today.

Revenues were up 3.6% to a record £172.3m, while underlying profit before tax grew by 4.4% to £7.8m.

Growth was propelled by strong performances particularly in its London pubs - buoyed by the continual return to offices of workers in the capital following the pandemic.

Like-for-like sales within the M25 climbed by 14.5% while elsewhere it saw a more modest 1.1% growth. Accommodation at its hotels was also slightly down by 1.8%. It blamed a disappointing summer last year and miserable start to 2024’s peak season as hitting trade in its coastal pubs and destinations in particular.

It also saw a continued decline in sales of its beers outside of its pubs, known as the off-trade - part of a deliberate move to focus more on sales of its own-brand beers within its pubs, where margins are higher.

Speaking to KentOnline, Jonathan Neame explained: “If you look in most supermarkets now, the shelf space for bottled ales is much reduced and the shelf space for international lagers is bigger.

“The off-trade has been very badly hit by the inflationary impacts on glass packaging and waste and so on, so it's become it's become very difficult.

“Having said that, our key brands are still available in all the key supermarkets. But we've withdrawn from one or two different segments and different products.”

Reflecting on the financial figures, Jonathan Neame concluded: “We have great beers and pubs, a strong balance sheet and a well-balanced and cash-generative business. We have a strong pipeline of pub developments and new opportunities in our heartland on-trade. We are optimistic about the consumer outlook and are well positioned for the future, notwithstanding the ongoing cost headwinds we face.”