Angry Landlords Predict Pub Closures Due to Tax Rises

Pub owners are warning of severe consequences if the planned business rates increase takes effect in 2026, with many expressing fears of raising prices, reducing staff, or shutting their doors entirely.

"This could be the final blow," said Phil Kiernan, who is considering closing his pub in the Forest of Dean, Gloucestershire. Luke Honeychurch also voiced concern, stating the new rates could leave him unable to pay himself a wage.

A Treasury spokesperson emphasized that the government is providing support, highlighting the Budgets 4.3bn package aimed at protecting pubs, restaurants, and cafes.

The Hog at Horsley, a well-loved Cotswolds pub near Stroud, is known for its local ales and lively atmosphere. Mr. Honeychurch, frustrated by the projected rise in business rates, has even created a social media persona called The Grumpy Landlord to express his anger.

Currently paying around 100 per month in business rates, he expects this to rise to 820 next year. Despite his social media post gaining attention and some small earnings, the tax increase threatens his already minimal wage of around 6 per hour, potentially leaving him with no income.

The Chancellor, Rachel Reeves, has stated her support for pubs and reduced the business rates multiplier from 50% to 40% for hospitality businesses starting in 2026. However, publicans like Wesley Birch note that their rateable values have more than doubled since the last official valuation in 2021, reflecting pre-pandemic conditions.

The government has promised to phase in increases, capping the first-year rise for most properties at 15% or less, but rates are set to climb over three years. UK Hospitality warns that small pubs could face a 76% increase in business rates, equating to around 12,000 more annually, with inevitable closures and financial strain.

Phil Kiernan of The Farmer's Boy Inn echoes this concern, stating his rates will double, adding another 16,000 a year to expenses. Rising energy costs, staffing expenses, and national insurance increases are compounding the challenge. "Weve hit the ceiling. I have no way to cover more costs," Kiernan said, warning that the survival of his pub is at risk.

Author: Connor Blake