‘Last Christmas’ for a lot of pubs due to Rachel Reeves’ tax hikes as bars hit
While for many this Christmas will be one of festivities and cheer, for many pubs it is set to be the exact opposite as businesses will struggle due to Labour’s tax hikes
Rachel Reeves’ Budget tax raid on boozers will make this Christmas the last one for many pubs, fear industry experts. The Chancellor’s revaluation of business rates means struggling inns could be left with no choice but to call last orders permanently, warned Alex Probyn, from property tax specialists Ryan.
He pointed to The Shakespeare pub in Derby, which will see its rateable value jump by more than 500% from April. Mr Probyn said the eye-watering rise was “turning a modest community pub into a business with a tax liability that bears no resemblance to its economic reality”.
He also highlighted the plight of another tavern in Wandsworth, south London, whose rateable value under the revaluation will rise from £16,750 to £121,000 — a 622% increase. Mr Probyn told industry journal The Morning Advertiser: “We are warning that many pubs may not be economically feasible from April 2026.
“The timing is stark. Without immediate reform, 2025 could be the last Christmas for many publicans — taking jobs, footfall and the village meeting place with them.
“And once they’re gone, the community rarely gets them back.” He said the hammer blow for boozers came as they faced a raft of challenges, including soaring inflation, spiralling staff costs, increases in alcohol duty, rising National Insurance Contributions, higher gas and electricity bills and the withdrawal of Covid support.
Mr Probyn said: “A pub closure is never just a business failure. It means the loss of a social anchor, a point of connection, a source of local employment and a cultural asset that is almost impossible to replace.”
He added: “Britain’s pubs do not need special treatment. But they need a valuation system rooted in economic reality.”
Just last week, pub bosses called an urgent meeting in order to help get through the year after the Chancellor’s budget last month. Now, representatives for the hospitality and nightlife industry are pushing Reeves to bring in vital relief on business rates so that pubs and bars can stay open.
The British Beer and Pub Association (BBPA) says by bringing down the rates, the government can help to maintain the long-term future of the sector. However, the Chancellor has not publicly responded to the plea for help.
Speaking after the meeting, the chief exec of the BBPA Emma McClarkin said that many will struggle to survive the skyrocketing of taxes on things such as business rates, which companies must pay in order to set up shop. Average projections are putting costs for pubs, bars and restaurants £1,400 higher than they were this year alone.
“The situation is so grave that it requires immediate action, as the very existence of thousands of pubs is at stake,” Emma said. “Without urgent intervention, communities will lose their pubs at an alarming rate, and take with them livelihoods and jobs.”
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