This week, the government announced a 15% reduction in business rates for pubs starting in April, alongside a two-year real-terms freeze and a review of how rates are assessed. While the package aims to save the average pub an additional £1,650 by 2026/27, many pub landlords feel the support is a mere token gesture.
The announcement follows significant backlash after November’s budget, where Chancellor Rachel Reeves reduced pandemic-era business rate discounts. The government forecasts that by 2029, UK pubs will pay 8% less in business rates overall, with 75% of pubs seeing their bills hold steady or decrease in 2026/27.
However, other hospitality sectors such as hotels, restaurants, and cafés received no additional relief, despite facing similar pressures from soaring costs.
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Landlords across Gloucestershire expressed frustration with the package, describing it as “a hollow victory” and “a personal attack.” Ellie Sainty, owner of The Old Spot in Dursley, called the 15% discount “just a drop in the ocean,” highlighting the relentless increases in energy, supplies, and staffing costs. “Business rates make up about 5% of net turnover, but when combined with other spiralling expenses, this ‘relief’ barely eases the strain,” she said. “It feels like a wilful destruction of our industry.”
Sainty also criticized the government’s approach to pricing, refusing to raise drink prices to £7 a pint out of fear it would deter customers. Instead, she plans cost-cutting measures to absorb expenses without alienating patrons.
Similarly, Julie Giborson of The Old Fox in Coaley acknowledged the discount but called it inadequate, suggesting VAT reductions would have been more effective. She warned that rising prices are forcing patrons to drink at home instead of socializing in pubs, which could spell long-term losses for the sector and government revenues alike.
Will Lloyd-Baker, chef and owner of Fostons Ash Inn near Painswick, echoed the sentiment that the package is too little, too late. While grateful for any assistance, he said it would only delay pub closures rather than prevent them. Lloyd-Baker advocates for VAT cuts, noting that many European countries have significantly lower rates, which would provide meaningful relief.
Overall, while the government’s relief package offers some fiscal support, many in the pub industry see it as insufficient to reverse the severe financial pressures threatening their long-term survival.