Publicans across England and Wales are expressing outrage and deep concern following last month's budget, which has triggered dramatic increases in business rates for the hospitality sector. Despite government claims of support, many landlords now fear for the survival of their businesses.
‘Terrified’ for the Future
Emma Harrison, managing director of the award-winning Three Hills pub in Bartlow, Cambridgeshire, is among those sounding the alarm. Her business rates bill is set to rise from £12,814 to over £22,620 by 2028, and to £28,595 once all transitional relief is removed.
"I'm really terrified about this coming year," Harrison stated. "We're a well-run pub, we've won lots of awards, but this is going to be really hard. I feel like we've been gaslit." She highlighted that soaring costs for staff, energy, and supplies, combined with the rates hike, leave little room to manoeuvre without risking customer numbers.
‘Squeezed from Every Direction’
The scale of the increases is stark. While large supermarkets face an average rise of just 4%, the trade body UK Hospitality calculates that the average pub will see a 76% increase and the average hotel a 115% rise. Small hospitality venues collectively face an extra £318 million in rates over the next three years.
Rob Hattersley of Longbow Venues in the Peak District provided a shocking example: one of his pubs, the George, faces a rateable value jump from £49,000 to £205,000. This will push its annual rates bill from £24,451 to £88,150 by 2029. "We cannot just pass these costs on to guests," Hattersley said. "Businesses like ours are being squeezed from every direction."
The issue stems from a revaluation of rateable values, which for pubs is based on "fair maintainable trade." As the last valuation was in 2021 during the pandemic, many pubs' values have now shot up. This, combined with the phasing out of a 40% Covid discount, means significant bill increases despite a new tax relief.
Campaigns and Closures Loom
In frustration, some publicans are taking direct action. Andy Lennox, landlord of the Old Thatch in Wimborne, Dorset, is spearheading a "No Labour MPs" campaign, providing stickers to bar politicians from pubs. His pub's rateable value will rise by 126%, pushing its bill from £18,620 to £36,190 by 2028.
"It's like somebody pushed the wrong button," Lennox remarked, noting his pub makes just 14p profit on a £5.50 pint after existing costs. "We're being taxed into oblivion... Unless something is done, there are going to be so many pub closures."
William Robinson of the 187-year-old Robinsons Brewery in Stockport echoed the sentiment, describing a "huge sense of disbelief" that Labour's promised business rates reform did not materialise. One of his Lake District pubs faces a rateable value surge from £45,000 to £224,000.
In response, a spokesperson for the Prime Minister stated the Chancellor had delivered a £4.3 billion support package, arguing that without intervention, pubs would have faced a 45% rise next year instead of the capped 4%. They maintained the government is "backing hospitality, not abandoning it." However, for many publicans staring at the figures, the future has never looked more precarious.
