A MAJOR support package for British pubs saving them £1,650 this year is “too little, too late”, experts have warned.
Chancellor Rachel Reeves has announced a support package to save the average pub an additional £1,650 in 2026/27.
Around 75% of pubs will see their bills fall or stay flat over the same year with the pub sector as a whole paying 8% less in business rates in 2029 than they do currently, the government claims.
Pubs will also be able to stay open later for the football World Cup in the summer that could see matches finish in the early hours of the morning, it was announced.
Pubs have faced significant pressure as their numbers have fallen by nearly 7,000 since 2010, a roughly 15% reduction and amongst the highest across hospitality overall.
Chancellor of the Exchequer Rachel Reeves said: “If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive. We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced.
“Thriving local businesses, bustling high streets and pride restored in our communities – that’s what this government is delivering.”
Too little, too late
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said this was “too little, too late”.
He added: “Unfortunately, this is too little too late. The whole small business sector needs urgent assistance from the government who has neglected their needs.
“Had more of the cabinet actually worked in a small business then their response to the current challenges may have been a lot different and more urgent.”
Michelle Lawson, Director at Fareham-based Lawson Financial, said it was yet another U-turn by Labour.
She continued: “Just a little too late showing complete ignorance from the government. They are taxing the country to ruin. Tax too much and you get nothing. Yet again, a U-turn and they wonder why they are unpopular. Knowledge, experience and guidance from every sector is crucial before making significant decisions such as these.
“Begs the questions on whether they were told and ignored or they were poorly advised. Hospitality had suffered and pubs are turning into ghost towns with many empty by 9pm.
“These are social stalwarts of many a community but when going to the pub becomes a luxury over a social it is a cut off for many. The whole thing was poorly executed and should be revoked for all not just one sector. This exposes the gaping hole and lack of business acumen full stop.”
Yet again, a U-turn
Rohit Parmar-Mistry, Founder at Burton-on-Trent-based Pattrn Data, said it’s akin to sticking a plaster on a broken bone.
He added: “Let’s stop pretending £1,650 solves anything. This isn’t a lifeline, it’s a rounding error in a business environment that has become hostile to survival. The data is clear: pubs aren’t closing just because of business rates. They are closing because their customers have been hollowed out by 15 years of wage stagnation and a cost-of-living crisis that has decimated disposable income.
“In our work analysing business viability, we see the same story repeatedly: you cannot optimise a business model when the demand side has collapsed. The government has spent a decade draining the tank of the British economy, and now they’re offering a teaspoon of fuel and expecting applause.
“Giving a fraction of money back to businesses while their customers are too broke to buy a pint is economic gaslighting. Until we fix the fundamental issue, that people simply don’t have the money to spend, these token gestures are just managing the decline of the British high street.”
Though Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, said the move is positive for pub landlords.
He continued: “Pubs have been closing at record numbers year after year for a decade. Any changes the government can make to free up some cash flow is positive, but there are so many other pressures facing them at a combination strategy would be useful.
“Landlords will breathe a sigh of relief after this though, as many expected the support to be meaningless, but this could make a material difference.”
