Pubs call for urgent business rates reform

The British Beer and Pub Association (BBPA) warns that current trends show that one pub will close every day in 2025. 

Why are pubs struggling in 2025? 

Pubs are one of the most heavily taxed business types in the UK, and many in the pub industry are calling for tax changes to keep pubs open and thriving. They warn that pubs are not just important for employment and the wider economy but are often the heart of local communities. 

Many pubs and other hospitality sector businesses are still recovering after the pandemic. Add to this the availability of cheap alcohol from supermarkets, further regulatory burdens from the Extended Producer Responsibility (EPR) recycling rules, the ongoing effect of the smoking ban legislation, consumer trends towards lower alcohol consumption, the increases to the national minimum wage (NMW) and employer’s national insurance contributions, and it is easy to see why many pub landlords are struggling to make a profit. 

Who is calling for business rate reform? 

The bosses of pub chains including Greene King, Wetherspoons, Youngs, Mitchell and Butler, Fullers, and McMullens have all publicly called on the Government to provide business rate reforms for pubs. 

Why are they calling for business rate reform? 

The hospitality sector has received Government support since the pandemic. Currently the Retail, Hospitality and Leisure (RHL) relief scheme provides a 40% deduction to business rates, but this is due to expire at the end of 2025/26. 

What changes to business rates are they asking for? 

The key change that pub bosses are asking for is to the way business rates are calculated for pubs. Currently business rates are calculated based on turnover. The pub industry is asking for this to be changed so that rates for pubs are based on profit. This is because while many pubs still maintain decent turnover, much of this turnover is taken in taxes and duties paid over to the Government and in covering the increased costs of regulatory changes such as the NMW and EPR. 

In the short term, pub bosses have suggested a 20% discount to business rates until long term reforms can be drawn up by the Government. 

Last updated: 17th July 2025