We have found the pubs in Lincolnshire likely to struggle the most with the business rate changes, according to recent data
Pubs across Lincolnshire “face an uncertain future”(Image: Getty)
A local pub organisation has warned that pubs across the county “face an uncertain future” after the government’s U-turn on business rate hikes.
Ash Corbett-Collins, chairman for the Campaign For Real Ale, said: “Pubs in Lincoln, and across the UK, sit on a knife-edge and face an uncertain future.
“The disastrous budget showed the Government’s complete disregard for our locals, and without the expected U-turn on business rates, many Lincoln pubs could be forced to close their doors for good.”
He added: “Pubs need permanently lower business rates bills, plus support with scandalously high energy bills and unmanageable hikes in Employer National Insurance contributions, along with lower VAT on food and drink if they are to not only survive but thrive.”
A spokesperson for the Ever So Sensible Pub company, which runs four pubs in Lincolnshire, said the current situation is becoming complicated and confusing.
They said: “The recent changes were presented by Rachel Reeves as a discount for industry, but the reality is far more complicated.
“While there has been a reduction in the overall multiplier, many pubs were previously receiving a 40 per cent discount against a slightly higher multiplier. The removal of that discount has more than wiped out any headline reduction.
“As a result, across our estate we are now facing materially higher business rates, with our bill increasing approximately £100,000 compared to the previous year. It simply isn’t sustainable.”
They added: “One of the most frustrating aspects is how hard this is to explain.
“Guests walk in thinking Ms Reeves had given us a “discount”, while we’re standing behind the bar with an abacus, explaining how multipliers, discounts and withdrawn reliefs somehow add up to higher costs.
“They look at you as if you’re speaking from an alternate reality, which, amusingly, seems to be where this ‘discount’ came from in the first place.”
They said that pubs are already dealing with higher food and drink costs, rising energy prices and pressure on consumer spending, but “business rates remain a blunt and poorly understood tax that takes little account of how pubs at the heart of their communities actually operate.”
They added: “If the intention was to support hospitality, the practical outcome for many operators has unfortunately been the opposite.
“I suspect many will be forced to close their doors next year.”
Data for Lincolnshire shows that The Bertie Arms in Uffington, Stamford, could be one of the pubs hit hardest, with an estimated 1,944.4 per cent reduction in its rateable value.
An update shared by the pub on social media states: “When the pub was brought back to life in 2017, it was a dilapidated building and a failing business.
“It was rebuilt from the ground up through sheer hard work, long hours and commitment.
“As the only retail business in the village at the time, it qualified for 100 per cent rural relief.
“There was nothing glossy about those early days, just determination and a lot of learning on the job.”
It continued: “In 2020, like everyone else, Covid hit. No valuations took place. Trade disappeared overnight.
“In 2023, the revaluation reflected those shutdown years and the downturn that followed. So yes, an increase in business rates was expected. That was never in question.
“But a 1,944 per cent increase is not ‘a bit of a hike.’ It’s eye-watering, and saying that out loud isn’t dramatic, it’s honest.”
Other pubs in Lincolnshire that are expected to see a big increase in rateable values include The Red Cow Inn at Fishtoft, Boston, with an estimated increase of 650 per cent.
The Anchor Inn at Bourne has an expected increase of 420 per cent, and The Admiral Benbow at Skegness has an estimated increase of 329 per cent.
