> In her November Budget, Chancellor Rachel Reeves scaled back business rate discounts that have been in force since the pandemic from 75% to 40% - and announced that there would be no discount at all from April. That, combined with big upward adjustments to rateable values of pub premises, left landlords with the prospect of much higher rates bills.
> Properties are assessed in a rating list with a rateable value, a valuation of their annual rental value on a fixed valuation date using assumptions fixed by statute. Rating lists are created and maintained by the Valuation Office Agency, a UK government executive agency.
Ah, interesting. So it sounds like the tax roughly scales with property value (or size). And pubs are probably a "poor use of land" because the revenue per square foot is not particularly high?
Yes. It scales with a government agency's estimate of the property's annual rent (even if you own it), based on market rates in the area over the past two years, which they then scale up/down based on floorspace and how dilapidated the building is.
You pay a percentage of the hypothetical rent as tax. There is a lower rate if you're a small business, and there are also tax reliefs for various reasons (charity, partial building occupation, etc.)
Pubs have high costs, small margins and customers are extremely price-sensitive. What pubs are generally asking for is more types of relief, because what we tend to see is pubs close, people in the area become more isolated, and the building remains empty for years thereafter. [] Pubs appreciated the post-COVID relief, but tax rates are about to shoot up.
[] fun fact: if the building is vacant, its landlord must pay rates as if it's 100% occupied. Hence this brazen scheme where a man puts a snail farm in every room so you can pay the rates of an agricultural enterprise: https://www.theguardian.com/news/ng-interactive/2025/dec/04/...
Many deaths were postponed because their taxes were reduced due to Covid. Those taxes are now returning to normal levels. This will result in a glut of deaths, as pubs that were just hanging on go under.
The policy question is, basically, do we want to subsidize pubs because they're part of our national culture, even though we don't use them nearly as much as we used to?
"Does Britain really need?" has been responsible for the gutting of so much of what used to make Britain a nice place to live over the last 20 years. You can say she same about public libraries, local bus routes, civic architecture, arts funding, youth services, maintenance budgets. The damage has been incalculable.
I’m not familiar with the UK, but is the tax on alcohol at pubs higher than at a store? My general understanding was that people have just shopped visiting pubs for other reasons - like diluted drinks, crappy food, loud music, etc.
> In her November Budget, Chancellor Rachel Reeves scaled back business rate discounts that have been in force since the pandemic from 75% to 40% - and announced that there would be no discount at all from April.
That, combined with big upward adjustments to rateable values of pub premises, left landlords with the prospect of much higher rates bills.
Existing tax. Proposed new calculation for the "value" of business property, disproportionately affecting pubs.
https://www.bbc.co.uk/news/articles/c8e57dexly1o
> In her November Budget, Chancellor Rachel Reeves scaled back business rate discounts that have been in force since the pandemic from 75% to 40% - and announced that there would be no discount at all from April. That, combined with big upward adjustments to rateable values of pub premises, left landlords with the prospect of much higher rates bills.
https://en.wikipedia.org/wiki/Business_rates_in_England
> Properties are assessed in a rating list with a rateable value, a valuation of their annual rental value on a fixed valuation date using assumptions fixed by statute. Rating lists are created and maintained by the Valuation Office Agency, a UK government executive agency.
Ah, interesting. So it sounds like the tax roughly scales with property value (or size). And pubs are probably a "poor use of land" because the revenue per square foot is not particularly high?
Yes. It scales with a government agency's estimate of the property's annual rent (even if you own it), based on market rates in the area over the past two years, which they then scale up/down based on floorspace and how dilapidated the building is.
You pay a percentage of the hypothetical rent as tax. There is a lower rate if you're a small business, and there are also tax reliefs for various reasons (charity, partial building occupation, etc.)
But pubs have been in trouble for quite some time: https://www.morningadvertiser.co.uk/Article/2025/05/27/numbe...
Pubs have high costs, small margins and customers are extremely price-sensitive. What pubs are generally asking for is more types of relief, because what we tend to see is pubs close, people in the area become more isolated, and the building remains empty for years thereafter. [] Pubs appreciated the post-COVID relief, but tax rates are about to shoot up.
[] fun fact: if the building is vacant, its landlord must pay rates as if it's 100% occupied. Hence this brazen scheme where a man puts a snail farm in every room so you can pay the rates of an agricultural enterprise: https://www.theguardian.com/news/ng-interactive/2025/dec/04/...
Pubs are dying. Have been for years.
Many deaths were postponed because their taxes were reduced due to Covid. Those taxes are now returning to normal levels. This will result in a glut of deaths, as pubs that were just hanging on go under.
The policy question is, basically, do we want to subsidize pubs because they're part of our national culture, even though we don't use them nearly as much as we used to?
"Does Britain really need?" has been responsible for the gutting of so much of what used to make Britain a nice place to live over the last 20 years. You can say she same about public libraries, local bus routes, civic architecture, arts funding, youth services, maintenance budgets. The damage has been incalculable.
You won't find any argument from me on all those other things.
But pubs are a weird place to draw the line.
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The government has decided that they know what’s good for you better for you than you do. So they tax alcohol at incredibly high rates.
Without this more pubs could exist. So I don’t think it’s a case of subsidising as much as removing the disincentive.
I’m not familiar with the UK, but is the tax on alcohol at pubs higher than at a store? My general understanding was that people have just shopped visiting pubs for other reasons - like diluted drinks, crappy food, loud music, etc.
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Lower taxes is not subsidising a business.
It is, when it gets a favourable treatment over other businesses
Changes to property taxes on business premises.
> In her November Budget, Chancellor Rachel Reeves scaled back business rate discounts that have been in force since the pandemic from 75% to 40% - and announced that there would be no discount at all from April.
That, combined with big upward adjustments to rateable values of pub premises, left landlords with the prospect of much higher rates bills.