Heineken has revealed plans to invest more than £44 million into improvements for hundreds of its UK pubs.
The Dutch brewing giant said the cash injection into its Star Pubs operation, which runs 2,350 sites across the UK, will create around 850 jobs.
The major investment plan comes despite a challenging backdrop for the pub sector.
Pubs have come under pressure from rising labour costs and increases to national insurance contributions over the past year, while consumer spending has also come under pressure with concerns over inflation and rising unemployment.
However, pubs received additional business rates support from the Government from last month to help ease their cost pressures.
Lawson Mountstevens, Star Pubs’ managing director, said the company’s investment plan is partly aimed at boosting revenues to help the group cope with the recent “sustained increases in running costs”.
The plans will see the business invest £44.5 million this year into upgrades for 647 of its pubs.
It said 108 of its venues will see particularly significant cash injections, with these all set for transformations costing at least £145,000.
Heineken said the majority of pubs are owned by the group but independently operated by locals, with sports-focused venues an emphasis for investment in the run-up to the 2026 football World Cup.
The pub firm and brewer said it has pumped £328 million into British pubs since 2018.
It has already started work in 52 locations, including eight projects where it is reopening boarded-up pubs which have suffered from lengthy closures.
Mr Mountstevens urged the Government to reduce the tax burden on pubs to help ease the cost burden and support more job creation in the industry.
He said: “We can only do so much; the root-and-branch reform of business rates that the industry has been calling for over many years is urgently required, as well as a lowering of the burden of taxation on pubs, including VAT and beer duty.
“We are calling on the Government to support us in bringing out the best in the Great British pub.”
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