Labour's newly announced aid package for Britain's beleaguered pub industry has been branded a mere "sticking plaster" by hard-pressed publicans, who warn the measures fall woefully short of addressing the sector's deep-rooted crisis. The government has revealed that business rates for pubs in England will be cut by 15% from April, with the average pub expected to save around £1,650, followed by a two-year freeze on increases.
Industry in Peril
This intervention comes amidst mounting pressure on ministers to support an industry that has seen more than 2,000 establishments close since 2020 alone, with two pubs shutting their doors every day during the final quarter of last year. While the government has also permitted extended opening hours this summer for pubs showing later-stage matches in the men's football World Cup featuring home nation teams, critics argue these measures represent small beer compared to the seismic challenges facing publicans.
Voices from the Front Line
Lana Bewry, landlady of the Golden Anchor in Nunhead, south-east London, revealed the desperate reality many publicans face. "I am really, really considering if I can do this any more," she confessed. "I'm at the end of my tether. The utility bills are astronomical." Ms Bewry described taking as little as £59 on some days, an amount insufficient to cover wage bills, let alone other overheads.
Rosie Nagaty, who runs the Old George Inn in Sykehouse near Doncaster with her husband John, calculated the business rates discount would save her approximately £50 monthly. "Pubs are closing across the UK every day," she stated. "There are three that have closed this week in my local area. They haven't closed based on £50 a month, they have gone into the red by tens of thousands of pounds."
Insufficient Support
Matthew Todd, landlord of The Wonston Arms near Winchester, Hampshire, called the government's support "woefully not enough," while George Greenaway, owner of the Tamworth Tap in Staffordshire - recently named CAMRA's National Pub of the Year for a record third time - revealed his business rates bill would still increase from April. "It's a sticking plaster, ultimately," Mr Greenaway asserted. "It doesn't address the issue, and we have waited a long time for this. It's a bit of an insult."
Broader Hospitality Exclusion
Publicans are now urging Chancellor Rachel Reeves to implement more comprehensive measures, specifically calling for action on VAT bills, crippling energy costs, and increased worker expenses following recent hikes in employers' national insurance and the minimum wage. Notably, other hospitality sectors including hotels, restaurants, and cafes will receive no additional support despite sharing similar concerns about soaring tax burdens.
Government Defence
Chancellor Reeves defended the package, telling reporters: "Pubs are where we come together - the backbone of our high streets, villages and towns. But for a decade and a half they have been in decline - 7,000 have vanished since 2010. That's why we're taking decisive action from April to save £1,650 for the average pub next year, and freezing their bills for two years after that."
She added that three-quarters of pubs would now see their bills remain stable or decrease from April, with the government committed to reviewing how pubs are valued for business rates over the long term.
Mixed Industry Response
Emma McClarkin, chief executive of the British Beer and Pub Association, welcomed the announcement: "We are pleased the government has listened to our concerns. This pub-specific package will stave off the immediate financial threat posed by accelerating business costs and will help keep the doors open for many."
However, Ash Corbett-Collins, CAMRA chairman, offered a more cautious assessment: "This short-term announcement is not the 'permanently lower business rates' that pubs were promised. While it is positive that the Chancellor has listened and announced extra discounts for pubs facing the threat of closure, it is short-sighted to think that today's statement will give publicans the certainty they need."
The Perfect Storm
The pub industry faces what many describe as a perfect storm of challenges. Beyond business rates, publicans contend with the indoor smoking ban's lasting impact, changing drinking habits, intense competition from supermarkets offering cheap alcohol, unprecedented energy costs, the lingering effects of the COVID-19 pandemic, and reduced consumer spending amid the ongoing cost of living crisis.
John Webber, head of business rates at property experts Colliers, noted that state aid rules would significantly limit assistance for businesses operating multiple pubs, but added: "If you are an independent you are stepping away from the abyss."
Will It Make a Difference?
The new support package - which also benefits live music venues - primarily addresses what would have been substantial business rate increases. For pubs with rateable values up to £20,000 (£28,000 in London), the 15% discount effectively eliminates previously anticipated maximum 5% increases. Establishments with values between £20,001 and £100,000 should see their bills remain approximately unchanged.
While the measures lift the prospect of significant rate hikes for most pubs over the next three years, they do nothing to reduce current operational costs. Crucially, there are no provisions that would enable pubs to lower prices for customers, with the cost of a pint and eating out remaining substantial deterrents for cost-of-living-hit patrons.
As the industry continues to grapple with what George Greenaway described as "a collapse in the industry and an avalanche of closures," many publicans remain unconvinced that this intervention represents anything more than temporary relief for a sector in desperate need of fundamental reform.
