Pub landlords hit with horrifying 2,000% increase in rates: ‘we are be | UK | News
A village pub is facing financial ruin due to a staggering 2,000 per cent rise in business rates valuations triggered by Chancellor Rachel Reeves’ controversial tax raid. The Bertie Arms in Uffington, Lincolnshire, will face the biggest percentage increase in estimated business rate value of any pub in the country, according to analysis by The Telegraph. This will result in a crippling tax bill of £17,000 from 2029.
According to the report, II. Katie and James Genever, landlords of the grade-listed thatched-roof village pub, said the change would almost wipe out their profits. Ms Genever, a former nurse, said: “It feels like we are being targeted and attacked from every angle. Hospitality is being attacked from all sides and used as a cash cow.”
He added: “That £17,000 is a small profit we make to replace windows or put in new carpet. We certainly won’t employ more staff or consider expansion without confidence that things will change.”
Pub will pay business rates for the first time as pandemic easing ends
The pub, built in 1681 and owned by Mr and Mrs Genever since 2017, will pay business rates for the first time in April due to the Chancellor’s tax raid on pubs, bringing an end to pandemic-era rates relief for hospitality venues. Ms Reeves is bracing for a major slam on changes announced in last year’s Budget following The Telegraph’s campaign and a backlash from her own MPs.
But as things stand, Mr and Mrs Genever will see their rateable value rise from £2,250 to £46,000 this year, which is a key factor in determining the size of the rates. This would be the highest increase of any pub in England and Wales, according to tax firm Ryan.
Mr Genever said the increase would result in him paying £17,000 in interest from 2029. Until then, annual increases in interest rates would be capped at £800 under the supportive small business (SSB) tax relief measure. Genevers said the pub made a profit of £20,000 last year, meaning the interest bill could force it into bankruptcy. This would deprive the Treasury of around £200,000 it has paid in VAT, National Insurance (NI) and corporation tax over the same period.
‘If MPs had to run their own businesses, they would all go bankrupt’
Ms Genever added: “If these MPs had to run their own businesses they would all be bankrupt. They can’t seem to look further than the end of their noses or see what it really takes to run a successful business.”
According to Ryan, an average of one bar will close every day in 2025, with almost 2,000 bars looking for last orders over the past five years. But on Monday Business Secretary Peter Kyle said he didn’t know the Chancellor’s tax raid would hit pubs so badly.
Pubs have faced a series of cost increases under Labour, including higher NI contributions and an increased minimum wage. They are also struggling with rising energy prices, with the UK industry paying more for energy than anywhere else in the developed world.
A Treasury spokesman said: “We are protecting pubs, restaurants and cafes with the Budget’s £4.3bn support package. Without this support we would face a 45 per cent increase in the total bills pubs will pay next year. Thanks to our support we have reduced this figure to just 4 per cent.”
The spokesman added: “This comes on top of our efforts to streamline licensing to help more venues serve drinks on the pavement and host one-off events, cut alcohol tax on cask beers and cap corporation tax.”
