'We can't absorb the cost, so we're going to have to pass it on': West Midlands landlords facing rising costs and uncertain futures post-Budget

In the autumn Budget at the end of November, the Chancellor Rachel Reeves announced a new discount that would see retail, hospitality and leisure businesses save 5p for every £1 paid in business rates.

However, for landlords such as Neil Taylor at the Fox at Shipley and Chris Millard at the Posada in Wolverhampton, the benefits don't seem to be apparent as they said they can see increases coming in 2026.

Mr Taylor said that while the amount he expected to pay in business rates was up in the air, he said he expected to see his costs go up by as much as £20,000.

He said: "The rates are still up in the air because they haven't 100 per cent come out and said what they're going to do, but everyone's rateable value has been increased and ours up to about £78,000, which mean my rates, according to the multiplier used from last year, could be as much as £43,000.

"They've also said they're getting rid of the retail and hospitality relief, but on the flip side, they're doing to reduce the multiplier, but you have to log onto the Government gateway for that and I have to wait 14 days for my calculation, so I could see a £20,000 increase in the rates bill.

"That doesn't help us to plan as it's up in the air at the moment, but it means the increase in the living wage and keeping the skills gap, so we'll have to give everyone a pay rise, and that has the knock on effect for employers and pension contributions as I have 30 people working for me."

Mr Taylor said the increase in payments and rates would invariably have to be passed on to the customer, who he said had been very supportive during Covid times, but said that they would notice and not necessarily be happy with price increases.

He said: "We can't just absorb the cost, we're doing to pass the costs on, because we've been struggling to break even since Covid as we've been paying back a business interruption loan we had to take out and which has nearly crippled us.

"There's been many times we thought it might be the end and we can't find a solution to this and I've had to borrow money personally to put into the business, but with the rates going up by £20,000 and the increased minimum wage and associated costs probably around £50,000, we could be seeing up to £70,000 increase.

"However, where there is a will, there is a way and we've come through the horrendous time with Covid, so I'm not going to let this take us down and we will find a way."

Chris Millard said he hadn't thought about the total extra cost to running the Posada, but spoke about what he described as a false economy from the costs involved.

He said: "From the budget, you're seeing national insurance, minimum wage and tax all shooting up, with the average being about 2p a pint, something I can't see many pumps adding that to, so you're looking at 5p to 10p with everything added.

"It's a false economy because it looks good on paper that they're raising the minimum wage, but what's going to happen is everything else is going to go up, such as the cost of milk, bread and beer and it's killing small businesses off as they can't afford to whack prices up.

"You're putting prices up to cover the extras, but you're going to lose trade."

Mr Millard said he was trying to look ahead with a positive outlook, but said it was becoming tougher and said he felt let down by the Government.

He said: "I've been here 23 years, so I'll do everything I can to keep the business running, but I'm not being helped much by the Government at the moment, and I'm a Labour supporter, but I think they're made a lot of false promises.

"I would love a bit of help, as I think everyone would, but while I don't like to moan about it, I don't think it's looking good for pubs and businesses at the moment."