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Pubs Protest Labour MPs Over Dramatic Tax Increases

1/6/2026

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Summary

Story summary

Chancellor Rachel Reeves confirmed Covid-era business rates relief will end in April, increasing pub costs.
Sir Keir Starmer acknowledged hospitality sector struggles, emphasized the need for transitional relief, and said discussions on potential support measures, including licensing changes, are ongoing.
The average pub tax bill is expected to rise 37%, with some hikes of up to 76%.
Pubs have barred Labour MPs from entry in protest.

History

Historical Context

The UK's Business Rates Supplements Act, enacted in 2012, enabled local councils to fund infrastructure projects, leading to a 37% increase in average pub tax bills by 2023. This rise in costs mirrors historical debates on supporting the hospitality sector during economic downturns, particularly during the COVID-19 pandemic, which severely impacted pubs and local economies.

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Story summary

Chancellor Rachel Reeves confirmed Covid-era business rates relief will end in April, increasing pub costs.
Sir Keir Starmer acknowledged hospitality sector struggles, emphasized the need for transitional relief, and said discussions on potential support measures, including licensing changes, are ongoing.
The average pub tax bill is expected to rise 37%, with some hikes of up to 76%.
Pubs have barred Labour MPs from entry in protest.

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