Rural Pubs: Fiscal Support

Debate between Saqib Bhatti and Dan Tomlinson

Wednesday 17th June 2026 Westminster Hall

[Saqib Bhatti]

The hon. Member makes an interesting point. When publicans speak to me about taxes, they talk about their turnover either increasing or staying stable but the costs going up. The Government have to set out what they will do to improve the fiscal landscape for pubs, and for the hospitality industry more broadly.

A lot has been made of Lord Milburn’s report on NEETs—those not in education, employment or training—and the rise in the number of 16 to 24-year-olds in that category. Has the Minister considered the impact of these tax rises on pub-specific jobs? Some 51% of people working in pubs are under the age of 24, meaning that many are likely to be balancing working in the pub with other part-time commitments such as school or university. These new employment costs mean that publicans will think again about hiring staff on a part-time basis, driving many people into worklessness. The national insurance rise has had the single most damaging effect on the Saturday job.

In addition to the crippling jobs tax, pubs are also suffering because of stifling increases in business rates. These policies threaten to be a huge—maybe even the final—nail in the coffin of many pubs that are really struggling. Analysis from UKHospitality has found that, by 2027-28, the average pub’s business rates will be £4,500 higher than they are today, rising to an astonishing £12,900 within three years, even with the reduced multiplier and transitional relief. I asked one of my staff members how much they paid for a pint of beer in one of the pubs in my constituency, and they said a pint of lager came to £7.50. That pub would have to sell an extra 1,720 pints just to offset the cost of those shocking tax increases.

The Conservatives recognise the value of our pubs. We have pledged to scrap business rates for 250,000 retail, hospitality and leisure businesses because we recognise the importance of ensuring that businesses keep more of what they earn, allowing them to invest in the community rather than sending it back to central Government. I say to the Minister that Governments do not create growth or jobs; our businesses do. This announcement formed part of our larger campaign to get Britain working again, freeing up money for businesses to hire new people, often younger and always local. It would drive new jobs and economic growth across rural areas of the UK.

Building on that, The Telegraph revealed last month that landlords will be hit with a “nice pub tax” under new guidelines. It found that HMRC has ordered officials to levy higher business rates on pubs that are in attractive locations or based in character properties. That is a complete disaster, and could mean that many pubs are forced—

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

It is important to note that the article in The Telegraph on the changes for rural pubs was about the fact that we published, with full transparency, the guidance used to value pubs that was signed off under the previous Government. This Government are cutting pubs’ business rates by 15% this year, freezing them for the next two years and reviewing that very guidance. We respect the press, but that article was fake news, and I do not think it should be repeated in this place.

[Saqib Bhatti]

I love the Minister’s passion, but I have not finished yet, and I encourage him—[Interruption.]

Business Rates: Retail, Hospitality and Leisure

Debate between Saqib Bhatti and Dan Tomlinson

Monday 19th January 2026 Commons Chamber

[Dan Tomlinson]

I thank my hon. Friend for raising this issue. Many grassroots music venues are valued as pubs. Intricacies and complexities in the business rates system mean that, when we think of pubs, it is important also to think of grassroots music venues up and down the country. We must provide support to them and to other businesses. That is why the Government stepped in with the £4.3 billion of transitional protection, over £2 billion of which will be in place this year.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

Those who run pubs in my constituency are really worried about the Budget and its impact on their business rates bills. Last week the Business Secretary said that there was no way the Government could have known about the impact of their decisions, but the valuation office then confirmed that it had told Ministers about the impact of their decisions, which I think the Minister has confirmed. He also confirmed that that data was easily accessible, so why did that happen? Was it wilful ignorance, was it incompetence or did they just go ahead anyway?

[Dan Tomlinson]

I am glad that the hon. Member was able to ask the exact same question as the shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride). I am not going to comment on the policymaking process in the run-up to the Budget.