They’ve been described as the ‘backbone of rural communities’ – but fears are growing that village pubs could close in the wake of Rachel Reeves‘ recent Budget.
Managers of rural inns joined countryside campaigners yesterday to warn that the Chancellor’s tax hikes could be the ‘last straw’.
The owners of one gastropub openly blamed the move for hastening their closure – and campaign group the Countryside Alliance warned that once village pubs, the ‘backbone of rural communities’, shut their doors, ‘a piece of the rural fabric gets lost for ever’.
Last month, TV star Jeremy Clarkson joined 13,000 farmers for a protest at Westminster amid claims that 70,000 farms would be hit by the tax changes.
The changes will make inherited agricultural assets worth more than £1 million – which were previously exempt – liable for the tax at 20 per cent from April 2026. Ministers have disputed the claim, saying only about 500 estates across the UK would be affected.
But The Mail on Sunday can reveal that the day after the protest, Mr Clarkson’s land agent Charlie Ireland gave MPs a private briefing on the full implications of the policy for the agricultural community.
Now, there are fears that many rural pubs and restaurants will go under in the wake of Budget hikes in employer National Insurance Contributions (NICs) and the National Living Wage.
Katie Parry-Evans, who runs the Hungry Ram gastropub with her husband Mike in Penuwch in Ceredigion, told customers it will shut on December 22.
Catherine Parry-Evans with her husband Mike. She announced to customers her Hungry Ram gastropub in Penuwch, Ceredigion would close on December 22
Rachel Reeves visiting Leeds Corn Exchange on Friday. The Chancellor’s hikes in employer National Insurance Contributions (NICs) and the National Living Wage could lead to some pubs going under
Ms Parry-Evans called the recent Budget a ‘kick in the guts for small businesses’
The Countryside Alliance warned that once village pubs, the ‘backbone of rural communities’, shut their doors, ‘a piece of the rural fabric gets lost for ever’
She said: ‘There is sadly no more we can do, especially as the recent Budget was nothing less than a kick in the guts for small businesses.’
And Lucy Cruz of The Brewery Tap in Furneux Pelham, Herts, slammed Labour for failing to warn in its election manifesto of the increase to employer’s NICs.
She said: ‘Any party that does that, to me that’s just cold, hard-faced lying to your constituents.’
Last night, Countryside Alliance director Mo Metcalf-Fisher said: ‘The Budget is clobbering rural publicans at a time when many are already struggling.’ Tory shadow communities secretary Kevin
Hollinrake added: ‘In rural areas, the village pub is of vital importance to those communities.’
A Treasury spokesman said that while it had taken ‘tough decisions’, it had supported ‘rural pubs by cutting duty on pints, increasing the employment allowance and providing 40 per cent relief off business rates bills next year.’