British Institute of Innkeeping (BII) reacts to u-turn on pub business rate increase

The BII has welcomed the news of a possible rethink on the business rates increases, placed on its already overburdened members, running independent pubs in communities across the UK.

With the detail of the u-turn yet to be decided, the scale of the potential positive impact remains to be seen, with pubs already struggling with huge challenges around increased overheads, unfair taxation and the direct impact of the 2024 budget as well as ongoing Covid debts.

Steve Alton, BII CEO commented:

“Even before the Chancellor’s budget in October 2025, our members are still reeling from the impact from the 2024 budget, with significantly increased employment costs in terms of NICs and National Minimum Wage, business rates bills more than doubled, and high energy and food and drink costs.

“Despite the clear and consistent evidence that the BII and all other sector bodies presented to Government of this devastating impact from the first budget, with only 1-in-3 pubs being profitable before the 2025 budget announcements, and over 100,000 jobs lost in our sector, at her second budget, the Chancellor chose to increase Business Rates and remove the sector specific relief, as well as further increasing the cost of employment. 

“The news that Government have decided to provide specific relief for pubs on business rates is welcome as a starting point, however we must have a reduction in the overall unfair tax burden our members have been facing, in order to safeguard the future of pubs, high streets and communities across the whole of the UK.

“When the business rates and Minimum Wage increases were announced in November, the impact meant that only 1-in-10 businesses would be profitable from April 2026 if they didn’t reduce their teams and services further, risking local employment and vital community spaces across the whole of the UK.

“The lack of understanding from the Government, and specifically the Treasury, about the incredible pressure pubs have been under, with huge challenges they have faced since the pandemic, has caused incredible frustration, anger and worry for our members.

“Without urgent action to reduce the unfair and unsustainable tax burden pubs are facing, we will see significant closures in every community.”

Notes to the editor:

About the British Institute of Innkeeping:

The BII is the leading independent licensee support organisation for individuals working in hospitality, with over 13,500 individual members running premises across the UK - predominantly tenanted, leased, managed and freehold pubs. The organisation provides expert helplines, online business support, and guidance on key industry issues, and savings on a range of supply deals for its members, keeping pubs thriving in the heart of every community.

For further information please contact:

Molly Davis

Head of Communications

Sentinel House, Ancells Business Park, Harvest Crescent, Fleet, GU51 2UZ

Mob: 07539 377752

Web: www.bii.org

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