Rates change could free millions for growth, Greene King finds

Greene King has called on the government to overhaul business rates in the Autumn Budget, claiming its proposals could release £13.7m for investment in its pubs and communities.

It comes as the pub company published a report earlier this week that set out the financial pressures facing the sector, including what it described as “unsustainable” business rates and rising National Insurance costs, which it said were limiting growth.

In light of this, Greene King is asking the chancellor to introduce a lower business rates multiplier specifically for pubs, providing a 20p discount on the current rate. 

According to the group’s calculations, this would deliver immediate relief across the sector from the next financial year and save it £13.7m annually. This would work out to about £10k per pub across its managed estate of nearly 1,500 pubs in England.

The company outlined how those savings could fund 1.1m hours of work, 3,250 Level 2 apprenticeships, more than 30 pub refurbishments, and 60 investment projects with its Pub Partners.

In the longer term, Greene King is also calling for fundamental reform so business rates are linked to a pub’s profits rather than its turnover, which it argued would better reflect the sector’s high running costs.

Nick Mackenzie, chief executive of Greene King, said: “The government has made growth its number one priority, and the chancellor now has the opportunity to make changes that will immediately unlock millions of pounds to do just this. We will be able to go even further and faster with our investments – creating new jobs, refurbishing pubs and breathing life back into communities up and down the country.

“While we welcome the commitment for long-term reform, this now needs to happen to ensure the system is fair and fit for the future, rather than stuck in the past.”

According to the report, pubs in England and Wales account for just 0.4% of business turnover but pay 2.1% of the national business rates bill. If taxed in line with turnover, the sector would pay £130m rather than the £637m it currently contributes, Greene King said.

Emma McClarkin, chief executive of the British Beer and Pub Association, added: “This report lays bare the financial struggles pubs and brewers are enduring thanks to policies which stifle growth and undermine investment, jobs, and vital community spaces.

“It has never been more urgent for the government to overhaul the outdated and unfair business rates system as our sector, which makes huge economic contributions and has priceless cultural value, is one of the most highly taxed industries in the UK.”