Devon pub owner says new government support is ‘not enough to save the sector’

The government has announced a major package of support for pubs, including cuts to business rates, licensing reforms and new funding aimed at helping venues survive and grow as part of local communities.

Under the plans, pubs will receive a 15% cut to new business rates bills from April, followed by a two-year real-terms freeze. The government will also review how pubs are valued for business rates, with changes expected to feed into the 2029 revaluation.

Ministers say the measures will save the average pub around £1,650 in 2026/27, with around 75% of pubs seeing their bills fall or stay flat in that year. Overall, the pub sector is expected to pay 8% less in business rates by 2029 compared with current levels.

The announcement comes as the number of pubs in the UK has fallen by nearly 7,000 since 2010, a reduction of around 15% - one of the steepest declines across the hospitality sector.

In Torquay, the impact of pub closures was felt keenly when The Hole in the Wall - widely regarded as the town’s oldest pub - confirmed it had ceased trading on 13 April 2025. Located on Park Lane near the harbourfront, the venue had warned in February 2025 that it was at serious risk of closure, with management saying it had until mid-April to resolve its affairs or face permanent shutdown. They cited rising supplier costs and months of roadworks along the Strand as key financial pressures.

Chancellor of the Exchequer Rachel Reeves said pubs and high streets were vital to restoring community pride.

She said: “If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive. We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced.”

The government also confirmed a new High Streets Strategy will be published later this year, alongside a review into business rates valuations carried out with businesses and valuation experts.

Additional measures include £10 million of funding for a Hospitality Support Fund over three years, increased from £1.5 million announced last year. The funding aims to support more than 1,000 pubs to expand community services such as village shops, cafés and play areas, and to help people furthest from the labour market into hospitality jobs.

Licensing reforms will allow pubs to open after midnight for Home Nations’ matches in the later stages of this summer’s Men’s FIFA World Cup, with further consultations planned for other major events such as Eurovision. The government will also legislate to increase the number of temporary events pubs can hold.

Locally, Erin Allgrove, owner of the Maltsters Arms in Tuckenhay, welcomed the announcement but said it did not go far enough.

She said: “It’s great news the government has recognised that pubs need support and has U-turned on the rates rise but pubs and the wider sector need much, much more than this - like a significant and long-term cut in VAT. Only then will the sector have a chance to recover and thrive.”

However, the decision to focus additional rates support on pubs has drawn criticism from other parts of the high street.

The Association of Convenience Stores (ACS), which represents around 50,000 local shops employing more than 440,000 people, said the move was short-sighted and left many retailers facing steep rises in costs.

ACS chief executive James Lowman said: “Local shops will feel neglected and dismissed by this Government today as they are passed over for additional support. For those facing rates increases in April of thousands of pounds, difficult decisions will have to be made about investment, employment opportunities and the services that are provided to customers.

“The Chancellor has a chance to make this right and extend business rates support in the Spring Statement to all retail, hospitality and leisure businesses. Without additional support, jobs will be lost, inflation will rise as retailers look to claw back margin, and investment will be put on hold.”

The ACS warned that thousands of convenience stores, particularly independently owned shops operating on petrol forecourts, are set to see significant increases in rates bills as Covid-era reliefs end, with transitional relief spreading those rises over three years.

The government says the pub-focused measures sit alongside a wider £4.3 billion support package announced at Budget 2025, including a permanent 5p cut in the business rates multiplier for more than 750,000 retail, hospitality and leisure properties.

Ministers say further engagement with businesses will continue as plans for reforming the business rates system and supporting high streets are developed.

Local pub and business owners in Devon are invited to share their views on the support package. Contact elizabeth.kings@clearskypublishing.co.uk for comment.