Pub Landlords Warn Budget Business Rates Hikes Threaten Viability
Budget increases in business rates for pubs have been cited as reaching up to £30,000 per pub across the UK. This rise follows the planned scrapping from next April of the COVID-era 40% rates discount, which has reportedly led up to 1,000 pubs to ban Labour MPs in protest.
In Poole, the Barking Cat Ale House faces approximately £9,000 per year in additional rates, with some local pubs experiencing rate rises between 600% and 800%. Pub landlords warn that the combined effects of higher business rates, increased wage costs, and rising beer prices threaten the viability of many establishments.
The government has stated that the COVID rates relief has ended but has introduced a £4 billion transitional relief scheme to cushion the impact of these changes. Labour MP Neil Duncan-Jordan from Poole has called on the Chancellor to reconsider the increase and is open to supporting amendments to the Finance Bill addressing these concerns.
The issue was raised during Prime Minister's Questions in a tense exchange between Kemi Badenoch and Sir Keir Starmer, with Starmer pressing the Chancellor, Jeremy Reeves, over the tax rises. The Poole constituency, which contains around 58 pubs, illustrates the significant local concentration of venues affected by the business rates changes.
