Pub sector faces £150m hit and jobs threat from spiralling business taxes

Despite business rates being lowered in the budget, industry bosses are saying the pub sector will be be facing taxes that could cost them so much, people would lose their jobs.

Analysis from the British Beer and Pub Association (BBPA) estimates that higher bills will cost the industry an extra £150 million, which is the equivalent to 12,500 jobs.

The BBPA have also calculated that bills will rise by £3,867 for the average small pub from next year, and by £11,085 for the average medium-sized pub.

Currently there is 40% discount for retail, hospitality and leisure businesses, which is capped at £110,000 for each individual business.

The Government confirmed in the recent budget this will be scrapped and end on March 31 next year.

It 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.

Rachel Reeves said it would be the “lowest rates since 1991” and would be paid for through higher rates on properties worth more than £500,000.

Since these Budget announcements, all analysis shows these changes will create an increase in bills for pubs.

Calculations by industry group UKHospitality found that the average pub’s business rates will jump by 15% next year, amounting to an extra £1,400.

Their analysis shows if this continues then by 2027-28, the average pub’s rates will be £4,500 higher than they are today.

Kate Nicholls, chair of UKHospitality, said plans in the Budget were “quickly unravelling”.

“The Government can solve this issue. I’m certain they did not intend to provide online giants, office blocks and out-of-town supermarkets with a better deal than local pubs, neighbourhood restaurants and coastal hotels.”