Landlords Warn Reeves's Budget Tax Rises Could Be a 'Pub Destroyer'
Reeves's recent budget ends the COVID-era 40% business rates discount starting next April, resulting in significant rate increases for pubs across the UK. Some establishments face hikes amounting to thousands of pounds annually, with reports of up to £30,000 per year for some pubs. For example, the Barking Cat Ale House in Poole faces nearly £9,000 extra, while other pubs report staggering rate increases between 600% and 800%.
The government has introduced a £4 billion transitional relief scheme to cushion these impacts but maintains that ending the COVID relief was necessary. Despite this, the substantial increases have caused considerable concern among publicans. Approximately 1,000 publicans across the country have responded by banning Labour MPs from their pubs in protest.
In Poole, Dorset, 58 pubs are confronted with rising costs, with landlords warning that these increases could force closures, labeling the policy a 'pub destroyer.' Neil Duncan-Jordan, Poole's Labour MP, has written to the chancellor urging a reconsideration of the tax rise and is prepared to vote against it; he may support amendments to the Finance Bill to address the issue.
The matter was debated during Prime Minister's Questions, where Kemi Badenoch and Sir Keir Starmer clashed over pubs policy. Starmer highlighted Reeves's pledge to protect pubs, while the Prime Minister emphasized that the relief was intended to be temporary. Local pubs, including the Barking Cat Ale House and the historic Poole Arms (established 1635), report not only significant rate increases but also other rising operational costs, intensifying the challenge for pub owners nationwide.
