Small pubs face 566% rate hikes as reforms threaten closures

A 566% rate hike could wipe out a Leighton Buzzard pub overnight. Now, owners say Starmer's broken promises are sealing their fate.

, and Administrator

2026 March 27 . 4:02 PM

1 min read

The image shows a black and white drawing of a group of people walking down a street, with a... — The image shows a black and white drawing of a group of people walking down a street, with a building in the background. At the bottom of the image, there is text which reads "Victorian riots in London". The people in the drawing appear to be in a state of distress, with some of them running away from the building.

Small pubs face 566% rate hikes as reforms threaten closures

Small pubs, restaurants, and hotels are facing steep business rate hikes that could push many out of business. The latest reforms are expected to cost the sector an extra £318 million over three years. Industry leaders warn that hundreds of venues may close as a result. The crisis came into sharp focus after Greene King boss Steve Perez revealed that 85% of pubs will see higher rates from April. On average, bills will jump by 78%, with some facing even steeper increases. One operator near Leighton Buzzard will endure a 566.67% rise in rateable value next year alone.

Perez had previously hosted Labour leader Keir Starmer at his warehouse just two days before Starmer became Prime Minister. During the visit, Starmer pledged to reform business rates and support the struggling hospitality sector. But Perez now accuses Starmer of breaking that promise, calling the meeting a wasted effort.

The situation is particularly unfair for smaller venues. While large distribution warehouses and supermarkets face only modest increases, independent pubs and restaurants are bearing the brunt. Many publicans risk losing not just their businesses but also their homes, as the financial strain becomes unbearable. Without intervention, the reforms will hit small venues hardest, with closures likely across the country. The sector now waits to see if any relief measures will emerge—but so far, no concrete changes have been announced. For many, the future looks uncertain as the April deadline approaches.