Pub landlord offers 5% discount on pints bought with cash

A pub owner has given customers who pay in cash a discount in an attempt to avoid rising card transaction fees.

Alan Davies, landlord of The Trumpet Inn near Ledbury, Herefordshire, has cut the cost of drinks by five per cent for anyone paying in cash, hoping to ease the financial pressure many UK pubs are currently facing.

The 53-year-old explained that card charges have become so steep that he felt compelled to take action, estimating he lost around £5 in fees for every £50 customers spend using cards.

Under the new system, a pint normally priced at £6 costs £5.70 when paid for with cash, and the same reduction applies to food orders.

He said the savings from reduced bank fees could cover the wages of an extra employee.

Since launching the scheme, cash payments have increased by 45 per cent, with many regulars embracing the return to a more traditional way of paying.

Davies said: ‘We decided that paying for the bank charges, the credit charges for the machine, it equated to enough to pay another member of staff.

‘The banks aren’t doing anything for this money, it’s just pressing some buttons.

‘A lot of small businesses are struggling with the moment, so we’ve gone back to the old system like when I was young.’

He said a few people have complained and suggested the incentive was a way to avoid paying tax.

He said: ‘You get a few people saying it’s for tax purposes, but how when it all goes through the tills the same.’

Regular customer Dave Holloway welcomed the initiative. He said: ‘Any discount in the current situation is a good idea.

‘It’s 30 pence a pint cheaper isn’t it? Anything you can save, is worth saving. It brings people into the pub.’

The move comes as industry figures warn that many pubs are at risk of closure, despite a recent business rates cuts announced by Rachel Reeves.

All pubs in England will get 15 per cent off their business rates this year after weeks of warnings the sector faces a massive spike in the tax.

Landlords argue that increasing costs including higher business rates, energy bills, beer duty and staffing expenses continue to place heavy strain on the sector.

The Night Time Industries Association CEO Michael Kill said: ‘While any recognition of the pressures facing pubs and music venues is welcome, this intervention amounts to little more than a drop in the ocean when set against the reality of the current tax system and the cumulative damage inflicted by the last two budgets.’

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