The Treasury has confirmed it is reviewing how pub business rates are calculated, as analysis by the British Beer and Pub Association (BBPA) warns that 2,300 pubs could be forced to close by 2029-30 unless the system is overhauled.
BBPA Chief Executive Warns of Devastating Impact
Emma McClarkin, chief executive of the BBPA, said the potential closures would be a “devastating blow to communities, jobs and local economies.” She emphasised that while the Labour government has cut rates by 15% this year and introduced a two-year freeze from 2027, these measures do not solve the long-term problem.
“Our analysis shows that if the underlying methodology is left unchanged, we could see around 2,300 pubs close in 2029-30,” McClarkin said. “Getting the methodology right is not simply an administrative exercise. It will have real-world consequences for thousands of pubs, workers, and the communities they serve.”
Greene King CEO Calls for Fairness
Nick Mackenzie, chief executive of brewery giant Greene King, issued a stark warning to ministers: “The upcoming Treasury review must fix the fundamental unfairness of the business rates system, which disproportionately penalises pubs. Until these meaningful changes are introduced, pubs across the country will continue to be stifled by regulatory costs and less able to invest and grow.”
Treasury Response
A Treasury spokesman said: “We have the right economic plan – we’re backing hospitality by cutting VAT on family attractions and kids’ meals this summer, reforming business rates, extending World Cup opening hours, and taking action on the cost of living to boost the sector.”
The review comes as the Labour government faces pressure from the hospitality industry to address the long-term viability of pubs, which are already struggling with rising costs and changing consumer habits.
