Rachel Reeves has been told she must take “urgent action” to save British pubs, as the industry faces “thousands” of closures and job losses as a result of her Budget.
Speaking to GB News, CEO of the Beer and Pub Association Emma McClarkin said publicans across the country are “petrified” of closing down or losing staff, as business costs continue to rise.
Industry leaders are fearing that the tax hikes announced in November’s Budget will trigger mass closures and job losses, warning thousands of venues could disappear without urgent support.
They are now urging Sir Keir’s Government to introduce a 30 per cent “pub-specific business rates relief” to stop pubs shutting and protect jobs.
Expressing her concerns for the industry’s future, Ms McClarkin told GB News: “The Labour Government came into the election with a five-point pledge to support pubs. They then had a very difficult Budget for us last year, which added in £650million.
“But they promised us that was once in a generation and that the next Budget, the business rates would be reset for pubs for the long term. But we’ve seen actually out of this last budget, £550million added in.
“And as you say, it’s left publicans petrified. They’re really distressed about whether they can afford to cover these bills, keep their doors open, or even a roof above their head as it’s many of their homes.”
Calling on the Government to take “urgent action” to help the industry, she stated: “We are asking the Government for this urgent action to come up with a pub specific relief to support these pubs.
Rachel Reeves has been told to take ‘urgent action’ to save pubs as the industry faces ‘thousands’ of closures and job losses
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PA / GB NEWS
“Without it, we could lose the equivalent of around 15,000 jobs due to the tax increases that they’ve put through.”
Asked by host Alex Armstrong how the changes are affecting the livelihoods of publicans, Ms McClarkin said: “We know that livelihoods are at risk, jobs are at risk, but we already know that pubs have been closing in 2025 at a rate of one a day.
“And we already predicted pre-budget that 2,000 pubs could close in 2026, and we are worried that that figure could get even higher if we do not get this urgent support.”
She added: “People are really distressed, and not only the publicans, communities are worried about losing that asset. It is so vital for them, it’d the only hope they have, the beating heart of the high street and the only place they can connect in their towns and villages.
Ms Reeves said that low growth “isn’t Britain’s destiny” at the start of the year | GB NEWS
“So we really need the Government to recognise the role that we play, not only economically but also socially to this country.”
Asked by host Miriam Cates if she believes the Government will “U-turn” on the tax hikes they have put on hospitality businesses, Ms McClarkin responded: “It is a crisis and we are trying to wake them up to this crisis.
“We met earlier this week with the Exchequer Secretary, Dan Tomlinson, we had an emergency summit in London of all the pub leaders, and brewers were there as well. They were very supportive of pubs getting this pub specific relief and we hope they’ll take action.”
She added: “They say that they’re listening, but it’s action we really need to see now. And we stand ready at the British Beer and Pub Association to work with the Government in collaboration, to find a solution for what is part of a British institution in the Great British Pub, as part of our culture, our society.
Mc McClarkin told GB News that up to 15,000 jobs could be lost if the Government does not take action
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GB NEWS
“It is the only place that we can come together and we really want to do that ahead of Christmas, so we can all go confidently into the new year knowing that our locals will still be there.”
Revealing the anger felt by pub owners towards Labour following the Budget, Ms McClarkin told GB News: “There are many publicans that are extremely angry and some of them have actually put a ban of Labour MPs in place in their venues. But we want to have a dialogue with the Government, we want to find a solution for the sector.
“We believe that they have misled us into believing that we were getting a good Budget and a good deal, but we will actually see rates bills going up, wages bills going up, beer duty going up.
“The cost of a pint will follow very shortly, and we want to work with the Government to say you’ve got to lean into pubs. We are so unique and important to our society and you can do something that really is meaningful, but you have to work with us.”