Publicans across England and Wales are expressing fury and fear following last month's budget, warning that drastic increases in business rates threaten the very survival of countless local pubs, hotels, and live music venues.
'Squeezed From Every Direction'
Emma Harrison, managing director of the award-winning Three Hills pub in Bartlow, Cambridgeshire, says she is "really terrified" about the coming year. Her business rates bill is set to leap from £12,814 to over £22,620 by 2028, and to £28,595 once all transitional relief is removed.
"We're a well-run pub, we've won lots of awards, but this is going to be really hard," Harrison stated. "Everything has gone up: employment costs, overheads, minimum wage, national insurance, electricity, and now business rates. You can't keep putting your prices up—we've already seen a drop in customer numbers."
Staggering Increases Across the Sector
The crisis stems from the latest three-yearly revaluation of business rates, which for the hospitality sector has delivered unexpectedly large hikes. While Chancellor Rachel Reeves announced a three-year tapered relief and claimed to be delivering the "lowest tax rates since 1991," many publicans feel the measures fall catastrophically short.
Rob Hattersley of Longbow Venues in the Peak District revealed one of his pubs, The George, faces a rateable value surge from £49,000 to £205,000. This will push its annual rates bill from £24,451 this year to £88,150 by 2029.
"We cannot just pass these costs on to guests," Hattersley explained. "People are already watching their spending... Businesses like ours are being squeezed from every direction."
According to trade body UK Hospitality, small venues face a combined £318 million rise over three years. The average increase is 76% for a pub and 115% for a hotel, starkly contrasting with just a 4% rise for large supermarkets.
Broken Promises and a Growing Rebellion
The situation has sparked a sense of betrayal, given Labour's pre-election promise to replace the business rates system in England. William Robinson, managing director of the 187-year-old Robinsons Brewery in Stockport, spoke of "a huge sense of disbelief" that significant reform was not delivered.
In a dramatic act of protest, Andy Lennox, landlord of The Old Thatch in Wimborne, Dorset, is spearheading a "No Labour MPs" campaign. His pub's rateable value will jump by 126%, forcing its bill from £18,620 to £36,190 by 2028.
"It's like somebody pushed the wrong button and was meant to put that on warehouses, but put it on pubs by accident," Lennox said. He highlighted that after existing costs, his business makes just 14p profit on a £5.50 pint. Hundreds of pub owners have supported the campaign, including TV presenter Jeremy Clarkson.
A spokesperson for the Prime Minister defended the government's actions, stating the Chancellor had delivered a £4.3 billion support package for hospitality. They argued that without intervention, pubs would have faced a 45% rise next year, which has been cut to just 4%.
Despite this, the sector's message is clear: without urgent revision, a wave of closures is imminent. As Andy Lennox starkly warned, "We're being taxed into oblivion... Unless something is done, there are going to be so many pub closures in the next three months after Christmas."
