Pub landlord Mike Edwards has warned rising costs are “murdering” pubs across the UK, as businesses struggle with soaring energy bills and increased taxation.
Speaking to GB News, the New Inn owner in East Sussex said cutting interest rates would make virtually no difference to most pubs or households, with many on fixed mortgages and business loans.
It comes as it was revealed today that the Bank of England has cut the UK’s base rate from four per cent to 3.75 per cent, providing a boost for mortgage holders, businesses, borrowers, and the Government.
The move was widely anticipated by markets, following the latest Office for National Statistics (ONS) data showing CPI inflation for the 12 months to November 2025 fell to 3.2 per cent.
However, Mr Edwards claimed this is of no help to pubs, which are struggling with the impact of Rachel Reeves’s November Budget.
He told The People’s Channel: “You talk about being £29 better off, but that assumes a standard mortgage rate. Most people have fixed mortgages or fixed business loans, so the interest rate isn’t going to drop. It won’t make any difference to disposable income in the short term.
“Fine, if you’re buying a new house, it’s a little less, but with house prices the way they are, you probably won’t have any money anyway. So, I don’t feel particularly inspired by it.”
He added: “I think the biggest problem is taxation on employees. We’ve been murdered by National Insurance rises and the cut in the starting rate for business NI on employees.
The pub landlord said that pubs are being ‘murdered’
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GB NEWS
“That has meant huge numbers of young people are now unemployed — a direct response to changes imposed earlier this tax year.
“For pubs employing young people, it’s hit us hard. We’ve had to cut employment, even though there’s big demand from young people wanting to work here.
“It’s no longer economic for them to take these jobs. It’s a crying shame. I think the Labour Government has done a disservice to young people in terms of working part-time, continuing education, and their general well-being.
“Today, the pub has been fairly busy, people enjoying Christmas drinks, Christmas lunch, and time with friends. But the big fear is what happens in January when business slows.
UK Hospitality has warned that pubs face a closure | PA
“Like all hospitality businesses, it could be disastrous.
“Costs, particularly energy, have gone through the roof, despite what the Chancellor says about cuts.
“Everything the Chancellor has done over the past year has hit hospitality very badly.
“I wouldn’t say I dread it, but I do have a very bad foreboding for the future. Many pubs are worrying about whether to put prices up.”
In last month’s Budget, Chancellor Rachel Reeves promised “permanently lower tax rates” for more than 750,000 retail, hospitality, and leisure properties.
But the relief will be paid for by higher rates on properties valued at £500,000 or more and many pubs will fall into this bracket when they are revalued next year.
At the same time, pubs will lose their 40 per cent rate relief from April, adding to the financial pressure on struggling businesses.
This will be replaced by a five per cent discount to the multiplier that calculates their bill, much less than they had hoped for.