Commons Sense

House of Commons · Adjournment Debate

Pubs and Community Funding 2025-05-19

19 May 2025 · 8 other contributors

Opened by Rebecca Paul Con Reigate

EconomyCommunity SecurityLocal Government

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Rebecca Paul raised concerns about pubs and community funding 2025-05-19 in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Concerns raised about the impact of increased costs and taxes on local pubs in communities like Reigate, Redhill, Banstead, and surrounding villages.
  • Pubs contributed 34.4 billion to the UK economy in 2024 and paid over 17.4 billion in tax, highlighting their economic significance.
  • The government announced a permanent reduction in business rates for retail and hospitality businesses to help mitigate higher bills and taxes.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Rebecca Paul Con Reigate

I am grateful to have the time to debate Government community funding and support for local pubs. We are fortunate to have so many amazing pubs in Reigate, Redhill, Banstead and our villages, and they are far more than just a place to have a pint. They provide jobs, enrich daily life, and even support local producers. Sadly, we have lost many pubs due to increased costs and taxes, diminishing social cohesion and the local economy. Pubs contributed £34.4 billion to the UK economy in 2024 and paid over £17.4 billion in tax, despite tight margins. They face rising energy bills, inflation, employer national insurance contributions, and business rates.

Other contributors (8)
  • Jim Shannon DUP Strangford

    The hon. Lady is making a reputation for herself in the House. Strangford and Ards have suffered from hospitality downturns. The Parlour Bar, built in 1735, faces closure like many other pubs due to increased costs.

  • Jayne Kirkham Lab/Co-op Truro and Falmouth

    From next year, the Government will permanently lower business rates for retail and hospitality. Does she agree that it would be good if the Minister confirmed this is in relation to current rates?

  • Chris McDonald Lab Stockton North

    The Garibaldi sounds like an amazing pub. Many of the things mentioned about its community importance also apply to clubs such as the Hardwick social club.

  • Richard Foord LD Honiton and Sidmouth

    Some sort of community ownership fund is required. The George Inn Continuity Group in Chardstock cannot buy the pub due to poor property management by the Wellington Pub Company.

  • Adam Jogee Lab Newcastle-under-Lyme

    The hon. Member from Newcastle-under-Lyme mentions his constituency's best pub and invites the Minister for a pint, using it as an opportunity to discuss local issues.

  • David Taylor Lab Hemel Hempstead

    The hon. Member from Hemel Hempstead highlights local community pubs and discusses innovative uses of empty shops, such as the Hop Tap opening in a market square.

  • Jayne Kirkham Con Truro and Falmouth

    My constituency's pub faces a similar fate with its rateable value doubling, putting the future of our community gathering place at risk.

  • Peter Davies Lab Camden

    The financial squeeze on pubs is a nationwide issue; my local establishment has seen a 50% increase in just one year, threatening its survival.

Government Response

Minister for Community and Constituencies

We recognise the vital role that pubs play in communities across the UK. In response to rising costs, we have announced a permanent reduction in business rates for retail and hospitality businesses from next year, helping those affected by higher bills and taxes. We are also introducing a new right-to-buy scheme for important community assets such as pubs, empowering local groups to save these valued buildings. To support the purchase of valuable community assets, we will reintroduce the Community Ownership Fund with over £135 million in funding available to 409 projects across the UK. This fund will provide much-needed financial assistance to help local groups acquire and maintain their cherished pubs. The Minister acknowledges the importance of community assets like pubs and highlights the government's efforts to support their preservation. He mentions the Community Ownership Fund which has awarded over £135 million to 409 projects since 2021, including funding for local pubs. Specific examples include the Rectory pub in Chesterfield and the Swan Pub project in Tonbridge receiving significant funds to secure community ownership and enhance community benefits. The Minister also discusses future plans such as the Community Ownership of Assets scheme and the £1.5 billion Plan for Neighbourhoods aiming to deliver up to £20 million funding over a decade for 75 communities. He invites the lead MP to discuss further support for the Garibaldi pub in Reigate, emphasising government commitment to community-led initiatives. The concerns raised by Members about the impact of rateable values on pubs are well-founded. The government recognises the vital role that pubs play in communities and acknowledges the financial pressures many face due to increasing rates. We have provided significant relief, with nearly half of all pubs benefiting from a £15,000 threshold under which they do not pay business rates. For this year, there is an additional 40% relief on top of the standard rateable value reduction. While I cannot pre-empt the Chancellor's upcoming Budget statement for autumn 2026, rest assured that our commitment to supporting community establishments remains steadfast. We continue to engage with stakeholders and will provide further updates in due course.

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