BII releases shocking post-Budget member survey

The British Institute of Innkeeping (BII) has released the results of a flash survey of its members, following the chancellor’s Budget announcement at the end of November. 

In the survey, BII members revealed the massive impact from the previous Budget in October 2024, which delivered increases in Employer NICs, Minimum Wage and the doubling of business rates bills, as the relief was cut to 40%.

Following the most recent Budget, publicans have said they will have to counter the additional rises in National Minimum Wage (up 8.5% up to £10.85) and National Living Wage (up 4.1% up to £12.71 per hour), alcohol duty (up nearly 4%), and the rise in business rates bills with a number of measures.

Around 90% say they will increase drinks prices; 80% will cut staff hours; 71% will increase food prices; 41% will cut services offered in the pub, such as offering food; 45% will cut opening hours; and 42% will make staff redundant.

"We have spent more than a year giving evidence to government about the huge impact the 2024 Budget had on pubs, pushing them to the brink, with ever increasing taxation on employment and the properties they occupy," says Steve Alton, BII CEO.

"We have been crystal clear that our pubs are not failing businesses, but that government policy and over taxation is holding back their full potential. Fair taxes unlock investment, skilled employment opportunities and growth in every community. Instead, these further, unfair taxes are devastating viable small pub businesses, threatening their future and that of all the people who rely upon them."

Business rates explained

In the Autumn Budget, pubs were given only a 5p discount off the standard multiplier rate used to calculate bills, but alongside the removal of the 40% relief, which was designed to be a safety blanket until business rates reform was delivered. An increase in rateable values followed the revaluation, meaning many have been left with thousands more to pay from April 2026.

"I wrote to the chancellor on Monday on behalf of our members, who feel betrayed and devastated following her announcement last week, and the subsequent release of the business rates revaluation figures," adds Alton.

"Our members priorities for the support they need and deserve have not changed – reduce the unfair and unsustainable levels of tax on their businesses, with a reduction in VAT to match our European counterparts, a full reform of the business rate system, rebalancing it with the digital economy, and a reversal of the huge rise in costs around employing people in local communities."

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