The Society of Independent Brewers and Associates (SIBA), representing about 700 UK beer makers, has written an open letter to Chancellor Rachel Reeves expressing deep concern over business rates changes announced in last week's Budget. The group warns the measures could be 'the difference between closure and survival' for community pubs.
Many hospitality businesses are already struggling with reduced consumer spending due to higher household bills, food price rises, and tax increases. SIBA argues that once property revaluations are factored in and transitional relief ends, pubs will pay 76% more in business rates by 2029, while large online tech firms face only a 16% increase.
The Budget introduced permanently lower tax rates for over 750,000 retail, hospitality, and leisure properties, funded by higher rates on the UK's biggest businesses, including tech companies like Amazon. A £3.2bn transitional relief package and an expanded small business support scheme were also announced. However, hospitality firms say these measures are insufficient to offset rises linked to increased rateable values.
SIBA's letter states: 'The promises made seem to be at odds with the reality that community pubs now face. With pub closures at a new high and having lost more than 100 breweries in the past year, the hospitality sector is in a fragile state.' The brewers call for either a delay in property revaluations or an increased discount for pubs.
Kate Nicholls, chair of UKHospitality, criticised the Budget, saying the government's manifesto promise to level the playing field between the high street and online giants 'is quickly unravelling'. She warned that extra costs, including business rate rises, higher minimum wages, and more duty, would be passed on to consumers through higher prices.
