Publicans ‘petrified’ over closures and job cuts after Budget tax increases
Industry bosses are calling for urgent tax relief after holding an emergency meeting on Wednesday.
Pub chiefs have demanded urgent tax relief to help avoid widespread closures and job cuts after holding an emergency meeting.
Industry leaders have said they are “petrified” over the impact of impending tax hikes announced as part of last month’s budget.
The British Beer and Pub Association has called on the Government to introduce 30% business rates relief specifically for pubs to help protect the future of businesses across the UK.
Pub bosses have warned that higher business rates could lead to as many as 15,000 job losses and hundreds of closures.
In last month’s Budget, the Chancellor announced a current 40% discount for retail, hospitality and leisure businesses – which is capped at £110,000 per business – will end on March 31 next year.
This will be replaced by a new system from the next financial year, which will see rates multipliers for retail, hospitality and leisure firms set 5p lower than the standard rate with no cap in support.
The Government also launched a £3.2 billion scheme of transitional relief to cap annual rises.
However, trade groups and tax experts have suggested the change and an increase in rateable values for most pubs will result in a significant annual increase.
The BBPA said pubs have seen their rateable values rise by an average of 30%, meaning that they face an average increase of 63%, or around £6,000, after also being impacted by the end of the current discount.
It added that around 4,800 of the smallest pubs will also now face a business rates bill for the first time after seeing an increase in their values.
Pub bosses held an emergency summit in London on Wednesday to digest the impact of the tax changes and have now called for a 30% relief package to be launched from April next year.
The BBPA said the Government’s plans to soften the new rates with transitional relief will “not counter the devastating impact”, with the total bill still set to rise by £150 million in 2028.
Emma McClarkin, chief executive of the BBPA, said: “This budget left publicans petrified and many fearing there is no way they can survive these sky-high bill increases or keep their home.
“The situation is so grave that it requires immediate action as the very existence of thousands of pubs is at stake.
“Without urgent intervention, communities will lose their pubs at an alarming rate and take with them livelihoods and jobs.
“A 30% pub-specific relief is the simplest, fairest and fastest way to protect Britain’s locals and we want to work with Government so we can ensure the sector survives.”
It came after live music and event sector bosses warned the Government that higher business rates payments could also cause “hundreds” of grassroots venues to close for good.
In a letter to the Prime Minister, industry groups and unions also warned that ticket prices for consumers will also increase as a result of higher rates.
