Introduction to the Issue
Poole in Dorset, known as the ‘Palm Beach of Britain’, is facing a crisis in its pub industry. The area has 58 pubs in the parliamentary constituency alone, making it a paradise for beer drinkers. However, many pub landlords in Dorset have joined a bitter backlash against rises in business rates of up to £30,000 following the November Budget by Rachel Reeves.
The Backlash
It is claimed that up to 1,000 publicans across the UK have even banned Labor MPs from their pubs after the Chancellor scrapped a 40% discount introduced in the wake of the coronavirus crisis from April next year. The row over increases has been brewing since the Budget and culminated in a clash between Kemi Badenoch and Sir Keir Starmer in the final Prime Minister’s Questions of 2025.
The Impact on Pubs
At the Barking Cat Ale House in Poole, which is facing a rise in business rates of almost £9,000 a year, father and son co-landlords fear the rises could lead to the end of orders for many pubs. "We’re about average at 157%, but we have lots of local pubs up 600% and another up 800%," Ambrose senior Mark said. "It’s a pub destroyer. Pubs can’t survive increases like that. It’s not viable. Most pubs are barely making ends meet anyway. Add in these massive increases and the profit margins are wiped out."
The Response from Publicans
Michelle Smith, landlady of the Poole Arms, the city’s oldest quayside pub dating back to 1635, said: "Our prices per value are set to rise by £9,000 in April so that’s quite a deal." She added that all of her prices are rising, and with the recent rate hike, her rates have already increased by over £1,000 a month. "Prices definitely have to go up, with all the different price increases we have everywhere: business rates, wage increases, beer from the breweries is going up. Everything is going up."
The Call for Action
Neil Duncan-Jordan, Poole’s first-ever Labor MP, supports the publicans and has written a letter to the Chancellor calling for a rethink. He said he was prepared to vote against the tax increase in the House of Commons and support an amendment to the Finance Bill. "You have to listen," he said. "They need to listen to consumers, to publicans and social club operators, to the issues they face and the impact these changes are having."
The Future of Pubs
Unless the government makes changes, pint prices will continue to rise. Publicans fear that the Government will thwart their plans if the Chancellor does not make a U-turn on tariff increases for businesses. The future of pubs in Poole and across the UK hangs in the balance, and it remains to be seen whether the government will take action to protect them from rising costs.
