BBPA calls for 30% business rates relief for pubs

The British Beer and Pub Association (BBPA) has called on the government to introduce a 30% pub-specific business rates relief, warning that thousands of venues face closure without urgent intervention.

The demand follows an emergency summit of senior pub sector figures in London to discuss the impact of the Budget and the long-term future of pubs. The trade body said the current rates revaluation risks pushing many operators “to the brink”.

Under the new system, about 4,800 of the smallest pubs will face a business rates bill for the first time. The BBPA said this would leave many struggling to remain viable.

For an average community pub, a 30% increase in rateable value combined with the loss of 40% rates relief would translate into a 63% rise in bills, or roughly £6k extra each year. Some pubs have seen their rateable values double or triple, the association said.

By contrast, the BBPA highlighted that distribution warehouses, often used by online retailers, face average increases of about 7%.

The association said transitional relief measures announced by the government would not offset the impact. It estimated the sector’s total business rates bill would rise by £150m by 2028/29 even after transitional support, an increase of 32%.

The BBPA is calling for a 30% pub-specific relief to be applied to final bills from 1 April 2026, warning that without it the additional tax burden could threaten the equivalent of 15,000 jobs.

The summit followed a letter sent to the chancellor in which industry leaders said they felt misled by claims that the Budget had permanently lowered business rates for pubs. The BBPA argued that a 5p adjustment to multipliers failed to address what it described as a long-standing imbalance, with pubs paying disproportionately high rates relative to their turnover.

Emma McClarkin, chief executive of the BBPA, said: “This Budget left publicans petrified and many fearing there is no way they can survive these sky-high bill increases or keep their home. The situation is so grave that it requires immediate action as the very existence of thousands of pubs is at stake.

“Without urgent intervention, communities will lose their pubs at an alarming rate and take with them livelihoods and jobs. A 30% pub-specific relief is the simplest, fairest and fastest way to protect Britain’s locals and we want to work with the government so we can ensure the sector survives.”

Industry leaders at the summit said that while the methodology used to rate pubs needed a full review, the scale of the immediate impact meant swift action was required to prevent widespread closures and further job losses.