Save The British Pubs! Celebrity Chef Calls For VAT Cuts To Keep Thousands Of Drinking Holes From Closing

Celebrity chef Heston Blumenthal has issued a stark warning to Chancellor Rachel Reeves: without urgent tax reform, Britain's beloved pubs could face mass extinction. In a passionate call for action to 'save the great British pub', Blumenthal calls for a permanent cut to VAT rates and a rethink of business rates, arguing that soaring costs and crippling taxes are threatening thousands of jobs and community lifelines.

Pub Closures Impact 378 Venues in 2025 Alone

The British Beer and Pub Association (BBPA) projects 378 closures across England, Wales, and Scotland in 2025. This marks a 10% rise from 350 closures in 2024, equating to one pub shuttering every single day, with over 5,600 direct job losses expected.

Official data from global tax firm Ryan reveals 209 pubs were either demolished or converted in the first half of 2025, averaging eight closures per week. The South East has been hardest hit, losing 31 venues. Since 2020, 2,283 pubs have disappeared, exacerbating a long-term decline of over 15,000 closures since 2000.

VAT Cuts Urged As 20% Rate Strains Hospitality Margins

Heston Blumenthal, owner of Michelin-starred gastropub The Hinds Head, is calling to 'save the great British pub' by urging a permanent VAT reduction from the UK's 20% rate, one of Europe's highest for hospitality.

'Pubs are at the heart of Britain's social fabric, offering far more than just a place to buy a pint,' Blumenthal stated, adding, 'When a pub closes, it's not just a business lost; it's a piece of local heritage.' The sector contributes £34 billion ($52.16 billion) annually to the economy and supports over one million jobs, yet £1 in every £3 spent goes to taxes, including VAT and beer duty.

Trade body UKHospitality echoes this, noting two-thirds of businesses have less than six months' reserves, while one in five have none at all.

Business Rates Hike Adds £215 Million Burden

Reforms to business rates is another flashpoint. In April 2025, relief was slashed from 75% to 40%, triggering a 140% spike in bills and adding £215 million sector-wide. Emma McClarkin, BBPA chief executive, warned, 'Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes. For many it's impossible to make a profit.'

A pub with a rateable value of £80,000 could see bills soar by £33,000, forcing price hikes on pints now averaging £5. Extended Producer Responsibility fees add £60 million yearly for glass recycling, while employer National Insurance hikes have compounded woes.

Entrepreneur @robprogressive summed up the pressure in a 14 August post: 'Most pubs will need to sell 60,000 extra pints a year just to pay the government.'

Innovation And Government Action Key To Reviving Pub Culture

Publicans must innovate, as Blumenthal's Hinds Head saw 20% footfall growth thanks to music nights, wine tastings, and family-friendly perks like free children's ice cream. Yet, without policy shifts, industry leaders say innovation alone won't stem the tide. The Campaign for Real Ale (CAMRA) estimates 1,200 closures in 2024 alone, with regional disparities showing London at a 1% closure rate, compared to 0.9% in the East and West Midlands.

Pubs play a vital social role, with 69% of Brits viewing them as key community connectors. Yet insolvencies rose 4% month-on-month to 282 in March 2025, prompting calls for urgent Autumn Budget intervention.

Blumenthal said, 'Saving the Great British pub is about more than nostalgia, it is about preserving spaces that bring people together.' With beer prices up 2.5% to November 2024 and inflation at 2.6%, halving VAT and freezing duties could save thousands of venues and safeguard the cultural legacy they represent.