Lancashire pubs face 'closure or putting prices up' over tax bill rise

The party says the more than 1,100 pubs in the county will be hit by a reduction in the level of business rates relief available to retail, hospitality and leisure businesses in England.

It warns of increased costs of more than £4,700 on average in the county council area as a result of changes coming into effect in April.

Fylde will be the worst affected of the total 14 local authority patches, with average bills in the district increasing by over £8,100. Coastal neighbours Wyre and Blackpool will be next hardest hit with increases of £7,400 and £6,700, respectively.

A 75 per cent cut in business rates for the likes of pubs, bars and restaurants was introduced in 2020/21, but the perk - up to a maximum benefit of £110,000 per business, is to be reduced to 40 per cent in 2025/26.

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Andrew Griffith MP, Shadow Business Secretary, accused Labour of levying “a pub tax”.

“Many pubs are facing a double whammy of higher business rates and higher national insurance.

“This is a massive kick to pubs which are the lifeblood of local communities. I fear many will close and the remainder will have to put up prices.

“Labour’s war on the local – a great British institution - shows how out of touch they are with ordinary people. The Conservative Party is under new leadership - and we will always back Britain’s pubs,” Mr Griffith added.

Nick Hyde, policy manager for the North and Western Lancashire Chamber of Commerce, echoed the concerns and said there was a third factor for venues to worry about - higher wage bills.

“Leisure and hospitality businesses across Lancashire are already facing struggles to stay afloat without having an extra tax bill to worry about.

“The recent rise in national insurance for employers, coupled with this new ‘pub tax’ and the increase in the minimum wage is a triple whammy for these sector businesses and is very concerning and will no doubt damage an already under threat industry,” Mr Hyde said.

In response, a Treasury spokesperson said the government had retained a tax break that would otherwise have disappeared altogether this year.

“Without our action, business rates relief for retail, hospitality and leisure would have ended completely in April this year. Instead, we are protecting one in three businesses from paying business rates and extending 40 per cent relief for 250,000 properties in retail, hospitality and leisure, while more than half of employers will either see a cut or no change in their national insurance bills.

“Our reform to the business rates system will also introduce a new, permanently lower business rate in 2026 for an estimated 31,000 properties in Lancashire and the North West - and this is all part of our Plan for Change that will kickstart economic growth so working people have more money in their pockets,” the spokesperson added.

According to the Conservative Party, this is how much more, on average pubs will be paying in each part of Lancashire:

Fylde - £8,167

Wyre - £7,400

Blackpool - £6,714

Preston - £5,717

Ribble Valley - £5,352

West Lancashire - £5,161

Lancaster - £4,768

Pendle - £4,429

South Ribble - £4,352

Chorley - £4,184

Blackburn with Darwen - £2,871

Burnley - £2,701

Hyndburn - £2,672

Rossendale - £0

Source: Conservative Party