Greene King boss: Business rates hike leaves publicans 'despairing'

Greene King’s chief executive said that changes to business rates in last month’s Budget have left “left many publicans despairing” and unsure “where they will find the money to pay their bills”.

Writing in the Daily Mail this week, Nick Mackenzie, who is also chairman of the British Beer and Pub Association, said the new 5p discount on the business rates multiplier was “nowhere near sufficient – and for most pubs has been entirely cancelled out by the rates revaluation”.

He said it was “bitterly disappointing this Budget has done so little to boost the nation’s pubs”.

Chancellor Rachel Reeves had branded the policy change as a win for the sector, having pledged to introduce the lowest permanent business rates since 1991 for more than 750,000 small retail, hospitality and leisure (RHL) businesses.

However, despite a small cut to the multiplier used to calculate business rates, it has become clear that for many operators their bills will increase.

Mackenzie cited the Anchor pub in Tilsworth near Leighton Buzzard as one such example. He said: “It’s the last pub in the village, but Ioannis [the publican] will see their rateable value jump from £10,500 in 2023 to £70,000 in 2026; a 566.67% increase.”

As a result, the hospitality industry has warned of further job losses, price rises and an exodus of UK talent.

Chair of UKHospitality Kate Nicholls said the 5p discount is only a quarter of the maximum 20p discount the government proposed last year.

She added: “This is particularly frustrating given changes to business rates valuations will mean that many hospitality businesses’ tax bills will still significantly rise, alongside increases to the minimum wage adding extra cost. Business tax rates for hospitality must continue to fall for the rest of this parliament.

“Hospitality remains under significant cost pressures, with the highest tax burden in the economy. We will continue to campaign for additional support for the sector, including further business rates discounts.”

Mackenzie called for the government to introduce “a rates system that fairly taxes UK pubs, recognising their real value, [and] creating breathing space for investment that can create jobs and drive growth”.

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