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Retail & Consumer

Pubs warn of widespread closures and job cuts over Budget tax increases

Pub chiefs held an emergency meeting and called on the Government to introduce 30% business rates relief

Security grating covers the windows of the closed down Black Horse pub in London in 2024(Image: Getty Images)

Pub bosses have called for immediate tax relief to prevent widespread closures and redundancies.

Sector leaders who took part in an emergency summit in London say they are "petrified" about the consequences of forthcoming tax increases revealed in last month's Budget.

The British Beer and Pub Association is urging the Government to implement a 30% business rates relief scheme specifically for pubs to safeguard the future of venues nationwide.

Publicans have cautioned that higher business rates could result in up to 15,000 job losses and hundreds of closures.

In last month's Budget, the Chancellor revealed that the current 40% discount for retail, hospitality and leisure enterprises – capped at £110,000 per business – will cease on March 31 next year.

From the next financial year, this will be superseded by a new framework, which will see rates multipliers for retail, hospitality and leisure companies set 5p below the standard rate with no cap on support.

The Government has also unveiled a £3.2 billion transitional relief programme to limit annual increases.

But industry bodies and taxation specialists have indicated that the modification, combined with an increase in rateable values for most pubs, will lead to a substantial annual rise.