The pressure on pubs has become ‘death by a thousand cuts’

The challenges faced by the beer, pub and hospitality industry, from business rate hikes through to the new one-pint driving rule, have been met by extreme concern from the sector. db reports.

The pub industry is warning of widespread closures if the UK government does not act soon to save it. From beer and trade associations through to publicans and brewery and pub operators, the sector is asking when the government will make changes to preserve its future.

In the November Budget, Chancellor Rachel Reeves scaled back business rate discounts that have been in force since the pandemic from 75% to 40% – and announced that there would be no discount at all from April.

Pleas to protect the industry

This week, MPs and leading voices from across the hospitality industry have been calling on the Prime Minister to rethink planned changes to business rates to protect the industry when Covid-era business rate relief comes to an end in April.

But the support needs to go further. Indeed, as trade association UK Hospitality has identified, the government needs to reassess National Insurance Contributions and publicans from across the UK based in rural locations as well as within cities have voiced concerns over the future following the government’s newly-proposed one-pint limit for drivers having a knock on effect on pubs.

Ministers will consult on lowering the threshold from 35mcg of alcohol per 100ml of breath to 22mcg. Newly-qualified drivers face even stricter rules as the Government seeks to lower fatal crash figures. But sources have claimed that the government is “pursuing its vendetta” against the pub sector.

The Countryside Alliance has said: “Pubs are an essential part of the rural community and way of life.” To emphasise this, it is “calling on the government to ease business rates burden, before hundreds of these vital community hubs are forced to shut for good.”

‘Death by a thousand cuts’

Speaking to the drinks business, UK Hospitality chair Kate Nicholls said:  ““The issue is cumulative tax burden so it becomes death by a thousand cuts but the big issues are rates and NICs.”

At Prime Minister’s Questions, Rachael Maskell, the Labour MP for York Central, called on Sir Keir Starmer to review the proposals to help “avert a crisis” on the High Street.

Maskell said: “Having met with many independent business owners, they fear the cumulative impact of the rateable value revision and relief reductions. In York, hospitality sees an average business rate rise of 41%, a music venue 44.4% and many independent shops increase around 27%. It will mean doors closing and trade ceasing, they just can’t do it. So could the Prime Minister urgently review the business rate proposals, and will he ensure a minister or official attends my business rate summit at the end of January, as I want to avert a crisis on York’s High Street.”

The plea was urgent and implored the fact that the government was not fully addressing ways to support the nation’s public houses and therefore the ecosystem supporting its communities.

Little hope

Starmer gave publicans little hope when he revealed that more support was being considered and told LBC: “We’re talking to the sector, particularly hospitality and pubs, about what further support we can put in, whether that’s licensing freedoms or other measures”.

Despite these claims, the worry is that tax policies will not change and, instead, this may simply be a nod to a relaxation of licensing laws.

Starmer has insisted that the government is in talks with the industry to see “what further support and action we can take” however the threats are still real and the responses continue to be vague and give no details on any of the measures being discussed.

No time for delay

Consumer Group the Campaign for Real Ale (CAMRA) has also insisted that a rethink on business rates hikes for pubs needs to happen now and not later.

CAMRA, which represents over 140,000 consumers and has been campaigning for pubs, pints and people since 1971, said pub-goers were demanding action from the government to avoid thousands of extra pub closures in 2026.

CAMRA chairman Ash Corbett-Collins said: “Instead of months of uncertainty and the prospect of thousands of otherwise viable pubs having to close their doors for good, the Prime Minister and Chancellor should give in to pressure, accept the inevitable and announce a rethink now. Whether through cock-up or conspiracy the government’s promise of permanently lower business rates for pubs hasn’t happened. Instead, publicans are facing higher bills from April, which they simply can’t afford.”

Corbett-Collins explained: “Pubs are a force for good in communities across the country, bringing people together and helping to tackle loneliness. But they can only survive if ministers think again about these business rates increases and come up with a plan that will save our locals.”

Yesterday, Downing Street said it was exploring “speeding up licensing reforms, slashing red tape, helping more venues stay open later, offering pavement drinks and putting on one-off events”.

Licensing reforms are not enough

But Jonathan Neame, chief executive of pub group Shepherd Neame, told the FT that licensing reforms were “a shallow political smokescreen, which will make little or no difference to the hospitality sector”.

Echoing this, David Wigham, managing director of Admiral Taverns, said: “Licensing reforms do nothing to tackle the rising costs that the government is causing. The government needs to offer financial support to the industry and the business rates reduction that we were led to believe was coming,”

Anger is now reportedly circulating within the industry over the situation and these have led to MPs being banned from more than 1,000 pubs across the UK.

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