The press release issued by the Campaign for Pubs on 27 November 2025.
Despite the cost-of-living crisis and with 8 pubs closing a week, Chancellor Rachel Reeves has turned her back on pubs and small brewers, offering no support at all to the vast majority of the UK’s world-famous pubs, whilst heaping extra costs onto small businesses through another rise in the Minimum Wage (paid for by employers, not the Government) and a levy on energy bills to pay for Sizewell C nuclear power station.
The only suggestion of a positive measure for some pubs in England was the Chancellor’s mention of a proposed reform of the business rates system, however in reality it seems clear that this will not be the reform pubs want or need and will actually increase many pubs business rates, some by substantial margins which is desperately worrying and could be the last straw for many of those businesses.
The Chancellor also reiterated the already announced review of the national licensing framework for England, but these don’t offer any support to pubs. With pubs already struggling and cutting hours, allowing pubs to open longer is completely meaningless.
The Chancellor Rachel Reeves has ignored pleas from pubs, publicans, pub campaigners and small brewers:
- She has failed to reduce National Insurance contributions for pubs and other small businesses, despite the clear evidence of the impact this has had, including thousands of pub jobs lost.
- She has failed to deliver lower VAT for pubs and hospitality, as other countries have done or consider Small Retailers VAT relief, whereby small businesses, including pubs, would pay less than huge chains.
- She has failed to increase current levels of business rates relief.
- She has failed to offer any support to help pubs, small breweries and other small businesses with sky high energy bills – and at the same time has put a levy to pay for Sizewell C nuclear power station!
- Alcohol duty will increase with inflation across the board next year and whilst duty is not a tax on pubs and whilst duty cuts do not get passed on to publicans, brewers, producers and pubcos do always increase prices, especially to tied pub tenants.
- There was no announcement about replacing the Community Pubs Fund, with a whole raft of community pub campaigns having failed due to the Labour Government’s decision to axe it.
- No reform of the beer tie, despite the fact it imposes considerable extra costs on tied publicans and despite the fact the Government could do this without any cost to the taxpayer.
- No announcement on much needed planning reform, so that unscrupulous owners and developers can continue to close and demolish viable and wanted pubs.
- No support at all for small brewers, with many closing over the last two years due to sky high energy costs and rising prices. No reversal of the damaging changes to Small Brewers Duty Relief implemented by the Conservative Government to favour larger brewers.
Pubs and publicans have also been hit with the Government’s increase in the Minimum Wage, something paid for by businesses, including pubs, not by the Government. Many publicans are already earning less than their staff from their pubs, this will only make that worse and will push others over the edge who will simply give up. Others will be forced to lay off staff or cut hours, as they simply cannot afford another hike in costs. Many publicans work exceptionally long hours for very low pay, in many cases lower than minimum wage, so tight are the margins during this economic crisis.
Having been hit with a huge cost hike in April because of the Autumn 2024 Budget – due to the NI and Minimum Wage increases and for English pubs the slashing of business rate relief – there have been 89,000 job losses in the hospitality sector. Pubs had pleaded for assistance from the Chancellor but received none.
The cost-of-living crisis has seen rising prices and business costs, including spiralling energy bills, at the same time as many consumers have had to reduce their spending. This ‘perfect storm’ of trading circumstances has led to a worryingly high rate of pub and small brewery closures. This is made worse by the fact that pubs are having to pass on at least some of the rising costs faced by brewers and other suppliers, making visits to the pub even less affordable to those on lower and middle incomes. The current crisis follows the lockdowns and restrictions during the Covid-19 pandemic, with many pubs still paying off considerable Covid debt, despite the fact trade has not returned to pre-pandemic levels, due to the cost-of-living squeeze.
Greg Mulholland, Campaign Director for the Campaign for Pubs said:
“This is a deeply disappointing budget that does nothing to address the crisis facing the UK’s world famous pubs.
“Despite around 90,000 lost jobs in hospitality since last year’s disastrous budget, the Chancellor has done nothing to address those damaging cost hikes and indeed has imposed further costs on pubs and publicans who have to pay increased staff wages, at a time when many publicans are already earning less than their staff. Even the mentioned business rates reform will actually see many pubs face hikes in business rates, so this really is an appalling budget for pubs.
“Altogether this budget will mean yet more job cuts in pubs and more publicans unable to make a living”.
Dawn Hopkins, Vice-Chair of the Campaign for Pubs and a publican in Norwich said:
“Week after week, eight more pubs vanish for good – taking with them people’s livelihoods, community spaces and vital local jobs – yet the Chancellor has chosen to look the other way. Publicans and pub lovers have been crystal clear about what support is needed, but we have been ignored.
“As a licensee, I am deeply disappointed, sad and frankly scared for the future. And for the Chancellor to claim that pubs will ‘benefit’ from business rates reform when many of us face higher rateable values from April feels, at best, disingenuous. It is disgraceful that this Government is prepared to watch the collapse of our pub industry rather than act to save it”.
Paul Crossman, Chair of the Campaign for Pubs and a publican in York said:
“There was very little in today’s Budget for pubs, and while the Chancellor may have been hoping that no news would be good news, publicans will in fact be bitterly disappointed that industry wide calls for a package of direct targeted help have been ignored.
“With a pub a day closing for good the status quo is clearly untenable, and now that it is clear that pubs will not even receive the promised help with business rates bills we look set to be entering an even deeper crisis.
“Pubs need real help on multiple fronts including with VAT rates, energy bills and employment costs if they are to continue to be able to serve their crucial role at the heart of our communities amidst the ongoing cost of living crisis. By ignoring clear, united calls for real help the Chancellor has only ensured that needless mass closures will continue to blight our communities, our economy and our culture.”
ENDS
The Autumn Statement did include another year’s extension of essential business rates relief for many pubs and a reduction in employers National Insurance contributions, but these measures are not enough to deal with the impact of very high energy bills, rising prices and consumers with less money to spend. The Campaign for Pubs and other hospitality campaign groups had been calling for a VAT cut to give direct support to pubs and restaurants, to allow them to get through this crisis. Once again, these calls fell on deaf ears with Jeremy Hunt and Rishi Sunak as usual listening only to the lobbyists of the big brewers and pubcos, something that has been the case through the Conservatives 13 years in power.