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Rural Pubs: Fiscal Support — [Wera Hobhouse in the Chair]
17 June 2026
Lead MP
Saqib Bhatti
Responding Minister
Dan Tomlinson
Tags
EconomyLocal GovernmentEnvironment
Word Count: 14136
Other Contributors: 20
At a Glance
Saqib Bhatti raised concerns about rural pubs: fiscal support — [wera hobhouse in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The MP asks the government to recognise the significant impact of rural pub closures and addresses concerns about tax rises and business rate increases affecting pubs. He requests specific measures to improve the fiscal landscape for these businesses.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The MP is concerned about the impact of government policies on rural pubs. He highlights that these establishments are crucial to local economies, providing over 300,000 jobs and contributing almost £11 billion annually. Rural pubs also attract tourism and provide social and historical value to communities, serving as meeting places for friends and essential services such as post offices and wi-fi hubs. The MP cites research showing that pub closures can have severe impacts on community well-being, including increased loneliness and mental health issues.
Pubs owners Jack and Buddy face significant challenges due to taxes, supporting the idea of lowering VAT rates specifically for pubs.
He agreed with Charlotte Cane and highlighted the severe struggles faced by pub owners in his constituency, describing this year as worse than during the COVID years. He called for an overhaul of the entire business rate system to support rural pubs.
Ben Lake
PC
Ceredigion
Could the Minister consider increasing the employment allowance for smaller hospitality businesses as part of his review?
Brian Mathew
Con
Melksham and Devizes
Wadworth in Melksham and Devizes faces an annual £750,000 increase due to employer national insurance contributions. The Three Magpies pub had to cut back on summer staff from 20 to nine this year, impacting young people's employment opportunities. VAT reduction and alcohol duty review are suggested solutions.
Calum Miller
Lab
Blyth Valley
Illustrates the struggles of rural pub owners like Becky and Donna, highlighting soaring costs and closures. Proposes VAT cuts and energy bill reductions as solutions, emphasizing the social impact of pub closures in villages. The pub industry is dominated by major pub companies, which often own tied pubs. This structure drives up rates for publicans despite their lack of control over it.
Charlie Maynard
Lab
Reading West
Charlie Maynard highlighted the significant challenges faced by rural pubs, noting over 200 closures in six months and rising costs such as food prices, high rents, business rates increases, energy bills, employer national insurance contributions, and wages. He emphasized that rural pubs are more affected due to limited customer catchment areas, reliance on expensive heating sources, and smaller labour pools.
She noted the loss or risk of 609 pubs since January this year in her constituency. She called for a reduction in VAT for pubs to 5%, action to reduce their energy costs, and the replacement of business rates. She highlighted two successful rural pubs in her area: The Carpenters Arms in Soham and The Black Horse in Rampton.
Bromsgrove
Acknowledges the challenges faced by rural pubs over a decade and highlights their importance as community assets. Mentions the value of business rates relief and calls for deeper structural reforms to prevent job losses.
Claire Young
Lib Dem
Thornbury and Yate
The Lamb Inn in Iron Acton, built in 1690, is a community anchor facing burdens such as employer national insurance contributions, business rates, VAT, and alcohol duty. Rural pubs are closing permanently due to financial pressures, leading to a loss of opportunities for young people seeking employment.
Gagan Mohindra
Con
Hertford and Stevenage
The MP highlighted positive stories from constituents about rural pubs in South West Hertfordshire, such as the Unicorn pub that supported a family with a terminally ill child through community events. The MP also mentioned other community-focused activities like free sandwiches at the Dick Whittington and family Easter egg hunts. Concerns were raised over excise duty increases affecting spirits sales by 17% in three years, impacting pubs' ability to maintain their role as community centres.
Lewes
Pubs are vital community hubs in rural areas, but many are struggling due to rising costs and business rates. The Lansdown Arms pub faces an additional £1,600 monthly cost from a rateable value increase of £22,250. Since 2011, the number of pubs in Lewes has decreased by 21%, with communities now crowdfunding to save their local pubs. James MacCleary called for an emergency VAT cut and fair business rates reform.
James Wild
Con
Charnwood
Mr. Wild highlighted the importance of rural pubs to local communities and expressed concern over the rising costs and pressures on pubs, especially due to business rates, alcohol duty increases, and extended producer responsibility rules. He noted that 161 pubs closed in the first quarter of this year alone, a significant increase from the previous year.
Mid Sussex
She supported Charlotte Cane's speech, emphasizing the importance of rural pubs for young people seeking employment opportunities. She suggested that reducing pressure on these venues would enable them to hire more young staff. The Horse and Groom in East Ashling saw its business rates increase from £11,000 to £32,000 a year. The pub is busy but struggling due to high costs; it needs government support.
Jim Shannon
DUP
Strangford
Jim Shannon emphasized the importance of rural pubs in Northern Ireland, highlighting their role as community hubs and their economic significance. He pointed out that soaring energy bills, national insurance contributions, and upcoming business rates revaluations are causing distress among pub operators. Shannon cited Hospitality Ulster data showing nearly half of operators have reduced staff numbers due to these challenges. Has the Minister spoken to Colin Neill from Hospitality Ulster about VAT issues and potential solutions in Northern Ireland?
John Glen
Con
Salisbury
He highlighted the challenges faced by rural pubs in Salisbury, citing Chickpea Group as an example of a thriving business that has expanded despite difficulties. He stressed the complex combination of factors such as national living wage increases, changes to national insurance thresholds, employment rights, and energy costs contributing to financial struggles for pub owners. What work has been done to look at the net effect of all Government decisions on the rural pubs sector and why a distinct solution is needed.
Julie Minns acknowledged the charitable work done by rural pubs, specifically mentioning the Black Lion and Crossings Inn in her constituency. She congratulated both establishments on their recognition through the Countryside Alliance's "Rural Oscars" awards.
Stratford-on-Avon
Pubs in Stratford-on-Avon are closing due to high operating costs, wage bills, national insurance contributions, energy and supplier price increases. The Golden Cross pub recently closed despite efforts to save it. Local residents saved the Fox at Loxley through community ownership.
Mike Wood
Con
Dudley South
Rural pubs often function as multi-purpose community centres, providing essential services like post offices, shops, and clubs for the elderly. Extra fiscal pressures can be detrimental to these vital local establishments. Suggests widening the differential in alcohol duty rates between draught beer sold in pubs and bottled/canned beer consumed at home, arguing it is crucial for rural pubs outside EU rules. Mr. Wood called for a business rates holiday to allow pub owners space to recoup investment before facing higher bills due to the current valuation system.
Rachel Gilmour
Con
St Ives
Pubs are not just about food and drink; they serve as social hubs for people, especially the lonely. The Butchers Arms in Carhampton reopened with a library and shop.
Visits a rural pub in Sutton Green and meets the owner Nigel. Argues that the Government should cut beer duty or increase draught discount to support struggling rural pubs.
Government Response
Dan Tomlinson
Government Response
Thanked the hon. Member for Meriden and Solihull East for securing the debate and praised other contributors. Mentioned government initiatives such as rural rate relief, lower business rates multipliers, a real-terms freeze in business rates, and £10 million funding package over three years to support hospitality businesses. Addressed concerns about VAT reduction and improvement relief, stating the cost of reducing VAT for hospitality would be £11 billion. Emphasised efforts to cut red tape through licensing policy framework reforms and pavement pint initiatives.
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Assessment & feedback
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.