29/05/2026
🚨Trade press this morning… need more info but this is concerning news…
Has anybody else heard of the latest “nice pub tax” that is being suggested by Labour?
Labour set to hit rural landlords with ‘nice pub tax’: Rachel Reeves is set to hit landlords with a "nice pub tax” on some of Britain's beloved country inns. Tax officials have been handed new guidance by HMRC which will see pubs in “character properties”, those nestled in more “attractive locations”, or ones which play a vital role in the community hit with higher business rates, reports The Telegraph. The guidance represents a significant shift in how nearly 40,000 pubs will be assessed during this year’s revaluation exercise, with industry figures cautioning that many venues simply cannot absorb the anticipated increases. Establishments by rivers or with scenic views will attract particular scrutiny from assessors, as will those offering outdoor facilities including children's play areas or generous parking. Gastropubs serving premium-priced menus also face elevated valuations, alongside venues with well-designed layouts intended to maximise food revenue. Urban pubs are not exempt either, with those offering breakfast service, daytime coffee or late-night trading also in line for higher assessments. The HMRC guidance specifically notes that rural properties should be “character properties maintained to a high standard with good levels of amenity” when determining their tax bracket. The revaluation process assigns each pub a rateable value based on its estimated worth as a business, with landlords then paying a proportion of this figure in tax. During the previous assessment, valuations reflected pandemic-era conditions, resulting in lower bills for many establishments. This year’s exercise is expected to produce dramatically higher figures, with the chancellor anticipated to raise an additional £12bn from the levy before the next review in 2029. Allen Simpson, chief executive of UKHospitality, said: “We have long called for complete reform of the broken business rates system, which has seen hospitality pay far more than its fair share for decades. While an ongoing review of valuation methodology for pubs and hotels is positive, we still need the government to deliver its commitment to lower rates bills for the entire hospitality sector. That is one of the critical ways to reduce hospitality’s cost burden, which is the highest in the economy.” Shadow communities secretary Sir James Cleverly said: “Labour’s business rates raid is heaping misery on to struggling pubs across England. Having promised to get bills down, Rachel Reeves has instead sent them soaring. Under Labour, it will be last orders for countless beloved watering holes.” But a government spokesman claimed Labour was “backing Britain’s pubs”. The government is “cutting this year’s business rates bills by 15% followed by a two-year freeze, extending World Cup opening hours and increasing the Hospitality Support Fund to £10m to help venues grow," he added. “HMRC’s expert surveyors use standard industry methods which have been used to value pubs for decades.”
