How will the UK Chancellor's Budget affect pubs?

The Budget's tax changes are expected to increase business rates for many pubs, despite promises of lower taxes and support packages.

Why are business rates increasing for pubs like Thorley Taverns?

Rateable values have increased for many pub properties, and COVID-era discounts are ending, leading to higher overall business rates bills.

Could the new Budget lead to more pub closures in the UK?

Yes, industry leaders warn that rising business rates and operational costs could cause more pub closures than seen during the pandemic.

Home / Business and Economy / Pubs Face £62K Rate Hike Despite Budget Promises

Pubs Face £62K Rate Hike Despite Budget Promises

28 Nov

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Summary

Pub chain owner faces £62,000 annual business rates increase.
Budget's tax cuts for hospitality deemed insufficient by operators.
Industry leaders warn of closures due to rising operational costs.

Pubs Face £62K Rate Hike Despite Budget Promises

Business rates are set to increase significantly for many pubs and hospitality venues across England, despite recent Budget announcements aimed at providing tax relief. Phil Thorley, owner of the Thorley Taverns pub group, projects a substantial £62,000 annual rise in business rates for his chain, a 27% increase. He criticizes the government's tax policies, stating they will place an immense financial burden on businesses already struggling with escalating operational costs.

While the Chancellor, Rachel Reeves, declared the lowest taxes for pubs since 1991 and promised support packages, industry figures argue these measures are insufficient. The core issue lies in the revaluation of business properties, leading to increased rateable values. Coupled with the phasing out of COVID-era discounts and changes in tax multipliers, many establishments face higher bills. Analysis suggests average increases of 42% for small shops, 45% for restaurants, and 66% for pubs.

Operators describe the Budget's impact as "smoke and mirrors" and a "stealth tax," warning that such cost pressures could lead to more closures than were seen during the pandemic. Concerns are also raised about the knock-on effects on employment and investment due to further hikes in minimum wage and national insurance contributions. The government maintains it is protecting the sector with financial packages, but many fear for the future of the British pub.

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