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Pubs, restaurants and small shops are all expected to see their property tax payments jump from the next financial year.
Henry Saker-ClarkThursday 27 November 2025 16:06 GMT
open image in galleryPub group Admiral Taverns has said it will weather Budget tax changes amid stronger trading (AdmiralTvaerns/PA)
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Pubs bosses have warned the Budget has threatened the future of jobs and venues across the UK, as they face sharp increases in business rates payments.
Pubs, restaurants and small shops are all expected to see their property tax payments jump from the next financial year.
Chris Jowsey, chief executive of Admiral Taverns, said the sector will come under more pressure following “relentless headwinds” over the past year.
He said: “The reality of Wednesday’s Budget is that Reeves has placed an even bigger burden on the shoulders of community pubs, posing further risk to our industry, threatening both jobs and the viability of our beloved pubs across the country.”
In the Budget, the Government confirmed a current 40% discount for retail, hospitality and leisure businesses – which is capped at £110,000 per business – will end on March 31 next year.
This will be replaced by a new system from the next financial year, which will see rates multipliers for retail, hospitality and leisure firms set 5p lower than the standard rate with no cap in support.
However, analysis from tax firm Ryan indicated the change and an increase in rateable values for most pubs will result in a sharp annual increase.
It found the average pub will see a bill of £9,264.93 this financial year rise by 65.9% to £15,373.59 for 2026/27.
The analysis also indicated that restaurants will see their rates bills jump by 44.9% from April, while small shops will see a rise of around 42.3%.
Pub bosses highlighted the higher minimum wage and an inflation-linked increase to alcohol duty will also make the cost of running pubs more expensive.
Nick Mackenzie, Greene King chief executive, said: “Pubs are crying out to be backed by the Government, and it is disappointing that has not happened in this Budget.
“Government has failed to deliver sufficient support around business rates and ultimately it leaves pubs with little room to invest to create jobs, grow and drive their local economies.
“Combined with the continued layering of other cost rises, including alcohol duty and above inflation wage rises, the cost of running a pub has once again gone up before publicans have even opened their doors.”
