Rachel Reeves has been warned that her Budget has handed a death sentence to British pubs. From April 2026, business rates reforms will abolish the 40% Hospitality, Leisure and Night-Time Relief (RHL), replacing it with a system that will force many venues to pay more, not less, critics say. Industry experts have also slammed an increase to employer’s national insurance contributions, announced at last year’s autumn Budget. Michael Kill, CEO of the Night-Time Industries Association (NTIA), said: “These aren’t marginal increases—they’re closure-level numbers. This reform has been presented as a permanent tax cut, but for most night-time venues it is the exact opposite.”
He added: “The removal of 40% relief wipes out any benefit from reduced multipliers and leaves businesses worse off overnight. Inner-city nightclubs, music venues, and grassroots venues are on the frontline of this attack. With the late-night sector already contracting by 28%, the Government is systematically shutting down the late-night economy.
Rachel Reeves unveiled her Budget last week (Image: Getty)
“This is a hidden tax rise on jobs, culture, and city centre life.”
Entrepreneur and the night-time economy adviser for Greater Manchester from 2018 until January this year, Sacha Lord, wrote in The Mail that he cannot see how pubs can survive Ms Reeve’s decision, and sees a future in which Brits will “have the choice of drinking supermarket lager at home or sitting in soulless chain outlets with plastic tables, paying £10 for a pint of gassy gunge”.
Nick Mackenzie, Greene King chief executive, said after the Budget was unveiled: “Pubs are crying out to be backed by the Government, and it is disappointing that has not happened in this Budget.”
In February, the British Beer and Pub Association reported that six pubs were closing for good per week.
Emma McClarkin, CEO of the BBPA, called for reform at the time.
She said: “We’re right behind Labour’s mission to supercharge growth and can deliver this economic boost across the UK, but only if it is easier for pubs to keep their doors open.
“Government must urgently bring in meaningful business rates reform and phase in new employment costs so pubs can keep boosting the economy, supporting local jobs, and remaining at the heart of communities.”
The regions that suffered the most from net pub closures were London at 1%.
Then came the East Midlands and West Midlands, with 0.9%. The North East suffered the least closures at 0.3%.
A Treasury spokesperson said: “We’re protecting pubs, restaurants and cafés with the Budget’s £4.3 billion support package – capping bill rises so a typical independent pub will pay around £4,800 less next year than they otherwise would have. This comes on top of cutting licensing costs to help more venues offer pavement drinks and al fresco dining, maintaining our cut to alcohol duty on draught pints, and capping Corporation Tax.”
