Cardiff’s infamous student pub, the North Star, has revealed it may have to close amid financial struggles despite its “best efforts” to stay open.
A very popular drinking spot amongst Cardiff University students, the North Star has spoken out about facing increased economic pressure over the past few years.
Located behind the Cardiff Uni Talybont accommodations, the longstanding pub has been a part of the city’s history since 1888, and was previously known as The College Tavern.
In a recent weekly news roundup by Wales Online, it was revealed that the North Star “may have to close due to the economic situation.”
The North Star’s general manager, David Rowlands, and the landlord, Tom Edwards, have since spoken exclusively to The Cardiff Tab about the struggles the independent Welsh hospitality scene has been facing over the past few years.
David and Tom revealed how the last “five/six years” have been “terrible”, due to the Covid-19 pandemic and subsequent lockdowns.
Not only has the Welsh hospitality scene been hit with financial uncertainty, the North Star also highlighted “NVM rises and loss of rate relief.”
“From our conversations with other venues, it’s really cemented the need for action to save our industry before it’s too late.
“VAT is 20 per cent, whereas in many European countries it is as low as three per cent – a study shows that the government makes more profit on a pint sold than the venue serving it, and this is mind-blowing!”
The pair also revealed that the increase in energy prices and record profits of the companies have been “extremely damaging”, with their electric bill being higher than their rent every month.
The combination of factors have meant the North Star faced closure twice over the summer, despite “best efforts in marketing and providing entertainment.”
North Star via Google Maps
The longstanding pub is open seven days a week, and is well known for its “hugely popular” Sunday roasts. However, David and Tom revealed they’ve had to borrow £8,000, as well as “slashing costs” and “reducing services just to keep the doors open”.
They added: “Independent operators are being outcompeted by supermarkets and low cost chains and it’s killing our industry.
“Without immediate relief, it’s my belief that within the next 12 months Cardiff’s independent scene will be gone – a view shared by many scared and deeply hard working and caring landlords and managers.”
The North Star feels pubs are an integral part of the “narrative” of British culture. Speaking about the independent pub scene, the manager said: “With all the narratives regarding being proud to be British, it’s been forgotten just how important pubs are to the local communities we serve.
“As much as every business wants to make money, it’s certainly not our main driving force – keeping the doors open and staff in work has always been our priority.”
Witnessing the financial struggles across the independent Welsh hospitality industry has been “heartbreaking to see,” with the pair feeling that “if pubs disappear then we have lost a huge part of our culture.”
David Chapman, Executive Director of UK Hospitality Cymru told The Cardiff Tab: “The North Star is yet another example of how Welsh hospitality is being taxed out. The city needs key pubs like this – near to the student community – and the potential loss of any business like this would be deeply felt.
“We’re urging the Welsh Government to make wholesale changes to its business rates reform proposals to include hospitality businesses, which have inexplicably been cut out of its current plans and the UK Government to fix NICs and cut VAT at the Budget this November.
“Without these changes we’ll continue to see venue closures, job losses and the erosion of our high streets. If supported – and given the tools to survive – hospitality has the power to drive economic recovery, but goodness, we’re a long way away from that at the moment.”
As part of their #TaxedOut campaign, UK Hospitality are urging members of the public to write to their MP using draft templates they have provided. The campaign is targeted towards asking the Government to consider business rates, VAT and NICs ahead of the Autumn Budget.
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Featured image via Google Maps and Canva
