Small pubs hit with £318m business rates hike under Labour’s budget

Labour’s budget just dealt a crushing blow to local pubs—while giants like Selfridges celebrate tax relief. Owners say they’re being ‘taxed out’ of existence.

, and Administrator

2025 December 10 . 9:16 PM

1 min read

Here in this picture we can see a group of people standing near a store and protesting with banners... — Here in this picture we can see a group of people standing near a store and protesting with banners and play cards in their hands and behind them we can see a store and we can see a pillar and lights on the roof present over there.

Small pubs hit with £318m business rates hike under Labour’s budget

Small pubs, bars, and cafés face a £318 million rise in business rates over the next three years. The increase comes after the Labour government’s latest budget, despite earlier promises to support the sector. Meanwhile, large department stores like Harrods and Selfridges will see their bills reduced.

Many pubs had hoped for relief in the budget. Instead, they discovered their business rates would climb sharply. James Fowler, a pub owner, claimed businesses were 'being taxed out' and felt ignored by policymakers. Andy Lennox, another publican, warned the industry was now in the 'last chance saloon' due to rising costs.

The tax rise will add £318 million to the bills of small venues over three years. Pub owners and industry leaders continue to push back, with some taking symbolic action against Labour MPs. The government has yet to respond to calls for a review of the policy.