Top News

Publicans have been left "petrified" for their future after Budget tax increases. Industry leaders are demanding urgent tax relief to prevent widespread closures and job cuts.

The British Beer and Pub Association (BBPA) has called on the Government to introduce 30% business rates relief specifically for pubs amid warnings that higher rates could lead to as many as 15,000 job losses and hundreds of closures. 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 the Government so we can ensure the sector survives."

In last month's Budget, the Chancellor announced that the current 40% business rates discount for retail, hospitality and leisure businesses - which is capped at £110,000 per business - will end next March.

This will be replaced by a new system that will mean rate multipliers for retail, hospitality and leisure firms set 5p lower than the standard rate.

However, trade groups and tax experts have suggested that the change and an increase in rateable values for most pubs will result in a significant annual increase.

Shadow Business and Trade Secretary Andrew Griffith said: "It's little wonder pub bosses are crying out for help. Labour snuck a deceitful hike to business rates into their Budget, with pubs facing staggeringly large increases.

"Labour had promised that business rate reform would 'level the playing field between the high street and online giants'. Instead, they have launched another tax raid, compounding the damage done by their disastrous jobs tax and heaping further pressure on businesses fretting about the prospect of Labour's unemployment bill.

"Labour do not understand business. Only the Conservatives will give businesses the environment to grow and create jobs, including by scrapping business rates for thousands of pubs, restaurants and shops on our high streets."

The BBPA said the Government's plans to soften the new rates with transitional relief will "not counter the devastating impact".

A Treasury spokesperson said: "We're protecting pubs, restaurants and cafés with the Budget's £4.3billion support package.

"Without this support, pubs would face a 45% increase in the total bills they pay next year. Because of the support we've put in place, we've got that down to just 4%.

"This comes on top of our efforts to ease licensing to help more venues offer pavement drinks and put on one-off events, maintaining our cut to alcohol duty on draught pints, and capping corporation tax."