Rachel Reeves insists Labour is backing Britain’s pubs, yet publicans are staring down another wave of inflation linked tax rises that many fear will push struggling businesses over the edge.
According to analysis reported by The Telegraph, the Treasury is expected to collect £118 billion in business rates from England alone between now and 2029, around £12 billion more than if rates had simply been frozen. Even the Office for Budget Responsibility previously forecast a smaller rise. That is a staggering extra burden for firms already battling higher wages, soaring energy costs, weak consumer confidence and falling footfall.
Pubs are also once again being treated as a cash machine for the Treasury.
The problem is not simply the headline figure, it is the timing. Inflation remains stubbornly high, and because business rates are linked to inflation, many pubs, restaurants and independent shops now face sharply rising bills at the exact moment households are cutting back spending. Greene King chief executive Nick Mackenzie warned that the current system is “adding unnecessary costs for pubs”, while UKHospitality has urged ministers to cap inflation linked increases before more venues disappear from high streets altogether.
This comes after years of promises from Labour about growth and revitalising town centres. Yet the reality for many businesses is relentless pressure from every direction. Employers are paying more in wages, more in energy, more in borrowing costs and now potentially billions more in property taxes.
The Government argues it is offering relief packages worth £4.3 billion and reducing multipliers for some retail and hospitality properties. But critics point out that these measures barely scratch the surface compared with the scale of the increases being imposed.
James Cleverly described it as a “cocktail of stealth taxation”, accusing Labour of claiming to cut rates while quietly allowing overall bills to surge. Whether people agree with him or not, there is little doubt that many businesses feel increasingly cornered.
At the same time, welfare spending continues to climb. Claims that “35 million people are on benefits” are misleading because that figure often includes pensions, child benefit and short term support payments counted across multiple claims. However, the welfare bill itself is undeniably enormous and growing rapidly. Universal Credit claims alone have risen to more than 8 million people, according to recent figures. Disability and sickness related benefit spending is also forecast to increase sharply over the coming years.
Taxpayers are entitled to ask a fair question. How long can Britain continue squeezing productive businesses, pubs and employers harder every year while expecting them to carry an ever expanding tax burden?
Pubs are not just businesses. They are employers, community hubs and part of Britain’s social fabric. Once they close, they rarely reopen. Many landlords now feel they are being punished simply for staying afloat.
The concern for many in hospitality is that Labour talks warmly about backing local communities, while Rachel Reeves quietly relies on inflation to pull billions more out of the very businesses keeping those communities alive.
