Speaking in the House of Commons on Wednesday 26 November, Chancellor Rachel Reeves delivered the 2025 Autumn Budget.
As part of the fiscal package, she announced free apprenticeships for under-25s and permanently lower business rates.
However, research from global tax firm Ryan showed business rates for many will increase significantly once the 40% temporary relief is withdrawn.
Ahead of the Budget, the Treasury also confirmed the National Living Wage and National Minimum Wage would be increased.
Moreover, calls for VAT and duty cuts were ignored, meaning alcohol duty will rise with inflation, adding further pressure to margins for cash strapped operators.
Barons managing director Clive Price told The Morning Advertiser (The MA) the Budget “punished businesses” and did “nothing helpful for hospitality”.
He said: “Nothing seems to have been learned from last year’s Budget, which resulted in 110,000 job losses in the sector.
No improvement
“The agenda for growth seems to have been dropped with no pro-business measures and no meaningful improvement in the unfair business rates burden that pubs pay.”
Price added the changes to business rates were largely unclear, but that some of the 11-strong pubco’s rateable values have gone up 60%.
Meanwhile, owner of the Unruly Pig in Suffolk Brendan Padfield described the Budget as “anti-business, anti-growth and anti-job creation”.
He told The MA: “For a sector that was already hugely beleaguered, we will have to work even harder yet again, if that were possible, and even smarter.
“The Government said they would put ‘country first, party second’, what utter hypocrites. This Budget is another sop to the Labour back benchers who haven’t a clue how to run a business, or in turn this country.”
Some also feared the price of a pint would climb even further, as well as the number of pub closures and job losses.
Owner of the Royal Dyche in Burnley Justine Lorriman told The MA she would now have to look “even more closely” at staffing levels, rota efficiency, supplier contracts and drinks pricing.
She continued: “Our staffing costs will rise, we are facing a significant increase in business rates and we expect the cost of a pint to climb as breweries will react to the increase in beer duty.
“Unfortunately, the Budget did not deliver the level of support our sector was hoping for. Pubs have been calling for fairer taxes and further financial relief, but neither of those materialised.”
Admiral Taverns chief executive Chris Jowsey noted the measures introduced would be particularly painful for community pubs.
Relentless headwinds
He said: “Licensees and operators across the UK have been working incredibly hard to sustain community pubs, continuing to show real resilience, despite the relentless headwinds.
“However, the reality of this Budget is that Reeves has placed an even bigger burden on the shoulders of community pubs, posing further risk to our industry, threatening both jobs and the viability of our beloved pubs across the country.”
Greene King CEO Nick Mackenzie also shared his disappointment with the Budget, adding the Government failed to deliver sufficient support, leaving little room for investment.
He added: “Pubs are crying out to be backed by the Government.
“The cost of running a pub has once again gone up before publicans have even opened their doors.”
Meanwhile RedCat Hospitality CEO Richard Lewis described the Budget as a “missed opportunity” and called for targeted support for the sector.
He said: “The sector deserves much more to encourage investment and support economic growth. We are a key driver of the economy, creator of jobs, and the beating hearts of our communities.
“If the Chancellor truly wants to support this vital industry and in doing so stimulate growth in every corner of the UK, then we require business rates reform, amendments to employer NICs, and a cut to VAT for hospitality.”
