A popular pub in North Yorkshire has taken the "difficult decision" to close after rising costs and staffing issues made it impossible to continue operating. 

The Fleece, in Richmond, will cease operation over the coming months. The business's bar and restaurant will close over the weekend, shutting up shop at 5 pm on Sunday (July 30). 

In order to honour existing room bookings, the Fleece hotel will operate a bed and breakfast service only for the next month, and close fully on September 1. 

The Fleece was renovated in 2018, opening as a hotel, restaurant and bar the same year. It has proved a popular watering hole and eatery for Richmond residents, and those from further afield, in their five years of trading.  

Read more: Review: The Fleece, Richmond

In a statement, owner Chris Miles criticised the Government's business tax policy, which he described as "an incredible burden" for organisations like The Fleece. 

He said: "Whilst I do not want to appear bitter (although I am a little, to be honest), it is imperative that our Government take action to provide much-needed support to businesses like The Fleece.

"We do not need a handout, but we must be able to keep more of the money that we generate. Since opening in May 2019, in addition to the increasing costs we have had to contend with, The Fleece has paid c£350k to HMRC in VAT and a further £100k in Employer National Insurance and Business Rates. 

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"That figure would have been higher has it not been for the temporary VAT reduction in 2020-22. 

"It is an enormous burden for a fifth of our income to be taken in VAT in addition to the other taxes we pay before any profit is made. We simply do not have the luxury of passing the 20 per cent VAT cost onto our customer and this decimates our profit margins.

"We need our Government to recognise this and help us - we don't want handouts, but we do need to be able to make profits." 

Mr Miles added: "The combination of unrelenting chronic staffing issues and ever-increasing costs mean we are simply unable to continue operating.

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"To be absolutely clear, The Fleece has not gone bust. I am choosing to close at this time to ensure that we can do it on our terms and in an orderly way. All our employees, suppliers, and other creditors will be paid on time and in full as they always have been.

"I would like to take this opportunity to thank all our team for their commitment, resilience and positivity over what has been an extremely difficult period.

"I would also like to thank our loyal customers for their support over the past few years. We have thoroughly enjoyed serving you."