Northumberland pub owner fears business rates rise could spark closures

Chancellor Rachel Reeves has announced that pubs and live music venues will get a 15% discount on their new business rate bills from this April, after warnings that mounting costs could spark a wave of closures.

But the support has not been extended to other hospitality businesses, despite their own concerns over rising costs from taxes, energy bills, and staffing.

Publican Robbie Morgan, who runs The Half Moon Inn in Stakeford and The Schooner in Amble, says the government support package is not enough to keep hospitality venues afloat.

From April 1, The Half Moon’s business rates will rise from £27,250 to £60,000, a 120% increase. The Schooner, which he reopened in April 2025, will see a 32.1% increase.

For pubs and other licensed venues, the government states rateable value is calculated using ‘fair maintainable turnover’. This is the annual level of trade (excluding VAT) your pub is expected to achieve if operated in a reasonably efficient way.

The Government has since confirmed a 15% discount for pubs and live music venues, but Robbie says this does little to soften the blow.

“Even with the 15% government discount, the bill is still far higher than before. It doesn’t feel like real support, it just looks like support on paper.” he said.

Hospitality businesses have faced other steep cost increases and even more still to come.

“Staff costs and brewery prices have increased every year and are set to rise again,” he explained. “Costs are also going up across the food chain as farmers and other suppliers face higher expenses.

“Operating in hospitality has never been more expensive, and costs keep going up. I fear this year could see many independent businesses close.”

“We’re getting more people through the door, running the pubs properly, and still, the better we do, the more they take. It’s impossible,” he says.

He is encouraging customers to raise concerns with MPs and councillors.

Cllr Guy Renner-Thompson, Bamburgh ward county councillor and chairman of Northumberland Conservatives said: “This derisory offer from a Labour Government under pressure is not as generous as it seems. 15% off your 2026 bill doesn't help when I know pubs in Seahouses whose rateable values are being put by 50% and a whopping 430% from their 2023 valuation. There is no support at all for hotels like the Victoria in Bamburgh whose rateable value is going up 70%.

“This is on top of rises in minimum wage, national insurance and alcohol duty which have forced pubs to put prices up meaning less people go in. It's a downward spiral which has a huge number of pubs for sale in Northumberland. Labour are determined to hammer the hospitality trade into the ground.”

The Chancellor’s offer of support came after she had previously announced changes in her November Budget that would increase business rate bills, through a combination of properties being revalued and the phasing out of Covid-era relief.

The Chancellor has also promised a new High Street Strategy to help retail, leisure and hospitality businesses thrive.

Ms Reeves 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.

"Thriving local businesses, bustling high streets and pride restored in our communities – that’s what this government is delivering.”