Labour's minimum wage hikes force sale of iconic pier in UK seaside town

One of the UK's most popular seaside attractions could be put on the market after a period of "subdued trading" and factors including the Labour Government's recent minimum wage changes. Brighton's Palace Pier, a Grade II listed structure established in the seaside city in 1899, welcomes millions of visitors each year and is frequently cited as one of England's most popular tourist attractions. But its parent company, the Brighton Pier Group, is considering selling the asset off amid declining profits and changes to the minimum wage.

In documents filed with Companies House, the firm said the pier's sales dropped by 4% in 2024 compared to the previous year, making a sale "the most effective course of action to preserve and realise value for all stakeholders". The pier, which has drawn weekend holidaymakers from London since Victorian times, introduced a £1 admissions fee to non-residents in May 2024, but the change doesn't appear to have been enough to correct an economically "difficult" few years.

In a statement, the company said: "The subdued trading performance of the Pier was largely the result of lower footfall during the key summer period, driven by poor weather conditions and the necessary resulting rides closures, and a general downturn in tourism to Brighton.

"The pier introduced a £1 admissions charge over the summer period, with local residents being exempt from the charge upon production of a residents' card. The admissions charge, which generated total net sales of £0.7 million during the year, alleviated the shortfall in the other departments from the lower footfall.

"In addition to the lower sales, trading performance was also adversely impacted by further cost increases, particularly in relation to wage increases and higher insurance premiums."

Chancellor Rachel Reeves implemented an increase in the National Minimum Wage to £12.21 per hour and hiked the rate of employer National Insurance Contributions (NIC) to 15% in April.

The Brighton Pier Group has already offloaded a handful of other businesses, including bars Lola Lo, Le Fez, Embargo Republica and Lowlander, based in cities including London and Bristol.

The Lightwater Valley adventure park, located near Ripon in North Yorkshire, is also currently on the market, less than five years after the group acquired it in 2021, with a price tag of £3 million.

"After consideration, the board has concluded the potential sale of some or all of the group's remaining assets," a spokesperson said. "It represents the most effective course of action to preserve and realise value for all stakeholders."