The government’s recent announcement of a 15% discount on business rates for pubs starting in April has been met with criticism from pub landlords, who describe the relief package as “too little, too late.” Alongside the discount, the government pledged a two-year real-terms freeze on business rates and a review of how these rates are assessed.
Officials claim the package will save the average pub around £1,650 in 2026/27, with 75% of UK pubs expected to see their business rates either decrease or remain unchanged during that time. By 2029, the government projects an overall reduction of 8% in business rates for the pub sector.
Despite this, many publicans argue the package falls far short of what is needed to support their struggling industry, especially after the backlash following the budget cuts announced in November. That budget reduced business rate discounts put in place during the COVID-19 pandemic and adjusted rateable values for pubs.
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Other hospitality businesses, such as hotels and restaurants, have been left out of the additional support, further fueling dissatisfaction.
In Gloucestershire, landlords voiced their frustrations unequivocally. Ellie Sainty, owner of The Old Spot in Dursley, called the package “a sticking plaster” and “just a drop in the ocean.” She emphasized the rising costs pubs face—including staff wages, energy bills, and supply expenses—that the modest discount fails to offset. “Business rates represent about 5% of our net turnover, but the other costs have skyrocketed two to three times over the past six to seven years,” Sainty said.
Sainty, who has been in the business for 40 years, described the current tax environment as “the worst I’ve ever seen” and likened it to “a personal attack” on the industry. She rejected raising prices to cover costs, noting that hikes could deter customers in a climate where going out is already seen as a luxury.
Similarly, Julie Giborson of The Old Fox in Coaley deemed the 15% discount “not enough,” suggesting that VAT relief might have provided more meaningful support. Giborson observed that rising costs are forcing customers to shift from regular pub visits to occasional social outings or drinking at home, potentially accelerating pub closures and government revenue loss in the long term.
Will Lloyd-Baker, owner and chef at Fostons Ash Inn near Painswick, echoed these concerns, calling the relief “a tiny drop in the ocean” that may only delay inevitable pub closures. He advocated for broader measures such as VAT reductions, highlighting that many European countries have lower VAT rates on hospitality, which significantly help their sectors.
In sum, while the government’s new business rate relief offers some financial respite, many publicans see it as insufficient to address the complex and growing challenges facing the UK pub industry.