Renowned Michelin-starred chef Tom Kerridge has opened up about the severe financial pressures plaguing the UK hospitality industry, with rising business rates pushing many pubs and restaurants to the brink of closure.
During an interview on Tom Swarbrick’s LBC show, Kerridge corrected a reported 15 percent increase in business rates, revealing that for his venues the actual hike is closer to 115 percent. Using his own experience running The Butcher’s Tap and Grill in Marlow, he illustrated how some pubs face annual cost increases exceeding £70,000. This dramatically jeopardizes the livelihood of owner-operators who often live above their establishments.
“I don’t know where you got that 15 percent, mine is about 115 percent,” Kerridge explained. “I have four pubs, and all are seeing roughly a 100 percent rise. While government relief softens the blow, it’s not a solution—it’s still killing you off in two to three years. These packages help only temporarily.”
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He detailed the stark situation at The Butcher’s Tap and Grill, a modest local pub in Marlow that isn’t Michelin-starred or generating massive revenue. Currently, the business rates are £50,000 annually but are set to surge to £124,000 — a £74,000 increase. For owner-operators living onsite and working long hours, this rise could wipe out their entire take-home pay.
“Most landlords live there, earning maybe £40-50k a year if lucky. With these rate hikes, that disappears. Then what’s the point of staying open?”
Prime Minister Sir Keir Starmer has acknowledged the difficulties ahead for pubs due to the end of Covid-related discounts and business rates reevaluation. Speaking to GB News, he said: “There are transitional provisions to help, but I acknowledge many pubs will struggle with new business rates. We’re working with them.”
The grim outlook is underscored by research from tax advisers Ryan, showing that in 2025, the equivalent of one pub will close every day across the UK, with 366 pubs either being repurposed or demolished within that year alone. These developments highlight the urgent challenges facing Britain’s historic pub culture.