Speaking at Treasury Questions in the House of Commons, James Wild MP challenged the Chancellor over her claims to be delivering a "new golden age" for the hospitality sector and the rising business rates she has imposed that will see thousands of pubs paying thousands more in tax.
Citing the British Beer and Pub Association (BBPA), James highlighted the human impact of these policies causing sleepless nights, pay cuts, staff layoffs, and anxiety over business viability. Figures from UK Hospitality show that pubs face an increase of £12,900 on average over the next three years.
These rises follow recent Budget decisions, including the removal of the 40 per cent business rates discount for retail, hospitality, and leisure firms, leaving pubs facing steep bill increases, an increase in rateable values, and the government’s selection of a multiplier discount of 5p.
Pubs are closing at a rate of about one per day in 2025, with 378 closures forecast to result in over 5,600 job losses. Small pubs face increases of nearly £4,000 in rates, while medium-sized venues will pay over £11,000 extra. Across the sector, these changes add £150 million in costs, with UK Hospitality warning that over three years the average pub’s business rates will rise by 76 per cent.
As a Shadow Treasury Minister, James pressed the Chancellor on the disconnect between government promises and reality, asking why businesses were told their taxes would fall when they are actually rising. He called for a reconsideration of the business rates multipliers and urged the government to change course on a policy creating anxiety for publicans and their staff.
Speaking in the House of Commons, James Wild MP said:
"The Chancellor promised a new golden era of hospitality, but the reality of her business rates raid, as the British Beer and Pub Association has said is sleepless nights, pay cuts, and staff layoffs for publicans who will be paying an extra £13,000 on average.
Why did the Chancellor last week tell businesses their taxes are going down when they're going up, and will she think again and change the multipliers?"
The Exchequer Secretary, Dan Tomlinson MP, said:
"The multipliers are a product of the change in the valuation, and they did come down and then we brought them down even further for RHL businesses. I would say to the honourable member that without intervention this year, the bills paid by pubs would have increased by 45% as a result of the increase in value since the pandemic. Because of the significant intervention that this government is making this year, they are going up by 4%. That is the impact of the changes that this government has made."
