Nigel Farage Unveils Reform UK's £3bn Pub Rescue Plan with Tax Cuts
Reform UK leader Nigel Farage has declared that pubs "matter" as he launched a bold five-point strategy to rescue Britain's struggling hospitality sector. The plan, valued at approximately £3 billion in tax reductions, is designed to counteract what Mr Farage described as a "disaster" facing pubs nationwide.
Funding Through Child Benefit Restrictions
The ambitious proposal would be financed by reinstating the two-child benefit limit for most households, with exceptions made only for what Reform UK defines as "British working families." This category includes around 3,700 households where both parents are British nationals employed full-time. Mr Farage emphasised that this measure is necessary to fund the substantial tax relief aimed at the hospitality industry.
Key Components of the Rescue Package
Reform UK's plan outlines several critical measures to support pubs and hospitality businesses:
- Reducing VAT to 10 per cent for the hospitality sector if Reform wins the next general election.
- Scrapping the employer national insurance increase announced by Chancellor Rachel Reeves in her first budget.
- Cutting beer duty by 10 per cent with an eventual goal of abolishing business rates for all pubs.
- Implementing regulatory changes to provide additional support for landlords.
Mr Farage claimed these measures could potentially reduce the cost of a pint by £1, offering much-needed relief to consumers and pub owners alike.
Industry Crisis and Recent Government Measures
The announcement comes amid stark warnings about the state of Britain's pub industry. According to the British Beer and Pub Association (BBPA), the number of pubs has plummeted from 69,000 in 1980 to just 46,350 in 2021. More recently, the Campaign For Real Ale reported that approximately 1,000 pubs closed in 2025, equating to roughly five closures per day, though some establishments are actively seeking new ownership.
Last week, Chancellor Rachel Reeves announced a rescue package for landlords worth around £100 million next year, which includes extending opening hours and providing a 15 per cent reduction on business rates for pubs in England, with this discount frozen for two subsequent years. However, this intervention has not been sufficient to lift a pub ban on Labour MPs, which was instituted after Ms Reeves indicated that Covid-era support measures would be terminated.
Mounting Financial Pressures on Hospitality
Trade bodies highlight several factors contributing to the sector's difficulties, including rising business rates, increased duties, higher wages, tax hikes, and new waste regulations. UKHospitality, representing pubs, restaurants, and hotels, estimated that the additional national insurance costs introduced in the last budget added £1 billion to expenses. Furthermore, April's minimum wage increase contributed an extra £1.9 billion to staff costs, while changes to business rates added another £500 million, resulting in a total additional bill of £3.4 billion last year alone.
Additional regulatory burdens, such as the Extended Producer Responsibility for Packaging—effectively a tax on glass—are estimated to cost larger pubs approximately £2,000 annually, according to the BBPA.
During a press conference held in a pub, Mr Farage expressed grave concern about the sector's future, stating, "What is happening to our pubs, what is happening to our hospitality sector, is little short of a disaster. They're on the edge of falling off a cliff. It's serious. It's very, very serious." His plan aims to address these challenges head-on, positioning Reform UK as a champion for Britain's cherished pub culture.
