Pub Landlords Condemn Reeves's Budget Tax Rises as Threat to Viability
The November 2025 budget announced by Chancellor Reeves has sparked significant concern among pub landlords across the UK due to sharp increases in business rates. Some pubs face rises as high as £30,000 annually, with specific cases such as the Barking Cat Ale House in Poole, Dorset, seeing nearly £9,000 extra per year. Certain pubs are experiencing rate increases between 600% and 800%, leading landlords to describe these changes as a 'pub destroyer' threatening their viability.
The government has ended the COVID-era 40% business rates discount for pubs but introduced a £4 billion transitional relief fund to mitigate the impact. Despite this, up to 1,000 publicans have banned Labour MPs from their establishments across the UK in protest of the tax changes.
In Poole, the parliamentary constituency includes 58 pubs, highlighting the local impact. Poole Labour MP Neil Duncan-Jordan has written to the chancellor urging a rethink of the policy. He has stated his preparedness to vote against the tax rises and support amendments to the Finance Bill.
The political debate spilled over into Prime Minister's Questions, where Labour leader Keir Starmer accused the chancellor of breaking a promise to support pubs. In response, the Prime Minister noted that the temporary relief had ended but a substantial £4 billion transitional relief package is now in place.
Pub owners cite rising business rates alongside increasing costs for wages and beer prices as significant pressures that are contributing to pub closures and price hikes, increasing concerns about the long-term sustainability of many establishments.
