Public Houses: Rural Areas

(asked on 3rd September 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to decrease (a) National Insurance and (b) business rates costs for pubs (i) since the Spending Review and (ii) ahead of the Autumn Budget in (A) rural constituencies and (B) West Dorset.


Answered by
Dan Tomlinson Portrait
Dan Tomlinson
Exchequer Secretary (HM Treasury)
This question was answered on 10th September 2025

The Government has taken difficult but necessary decisions to deliver long-term growth. Fixing the public finances is critical to creating long-term stability in which businesses can invest and thrive.

The Government recognises the need to protect the smallest employers, which is why we have more than doubled the Employment Allowance to £10,500. This means more than half of businesses with NICs liabilities either gain or see no change this year. Businesses will still be able to claim employer NICs reliefs including those for under-21s and under-25 apprentices.

From 2026-27, we intend to introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties in England with rateable values (RVs) below £500,000. This permanent tax cut will ensure that eligible RHL businesses benefit from much-needed certainty and support.

Ahead of these changes being made, the Government recognises that business will need support in 2025-26. As such, we have extended the RHL relief for one year at 40 per cent up to a cash cap of £110,000 per business. Under the previous Government, RHL relief was due to end entirely in April 2025. By extending the relief, the Government has saved the average pub, with a RV of £16,800, over £3,300.

To ensure that key amenities are available, and that community assets are protected in rural areas, Rural Rates Relief provides 100% business rates relief for certain properties in eligible rural areas with populations below 3,000, including those that are the only public house, with a RV of up to £12,500.

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