The owners of an award-winning pub in Derbyshire have urged the Government to cut VAT to help save venues across the country – with thousands of landlords facing a potential tax hike in 2026.

As many as 15,000 pubs across England and Wales are set to face increased taxes from April 2026. The owners of these venues do not currently pay business rates, as the value of their properties is too low.

The Government, however, is set to reassess these values, which are calculated based on a pub’s sales. As the price of a pint has increased significantly since the previous review nearly 10 years ago, these inflated figures could see many pubs being forced to pay business rates for the first time while continuing to contend with rising costs.

Colette Dewhurst runs the Barley Mow at Bonsall alongside her husband Mick - which was named as Derbyshire’s best pub earlier this year by The Daily Telegraph. Colette said that although the Barley Mow remained busy, with regular customers who give their support, it was becoming increasingly difficult to cover the costs associated with running the pub.

The owners of the Barley Mow have called for VAT cuts to ease the pressure on pub landlords.

placeholder image — The owners of the Barley Mow have called for VAT cuts to ease the pressure on pub landlords.

She said: “Our little pub couldn’t physically be much busier. I would wager that, square foot by square foot, it’s as busy as any pub in the land. We put blood, sweat, tears and a lot of love into it. Long may it last.

“Our amazing regular customers couldn’t spend much more than they do. We really can’t work any harder, and I really don’t think we can sustain this pace of 80 hour weeks at our age, after 17 years of it, for much longer. My absolute machine of a man has been struggling with a knee and ankle problem for almost five months.

“Many people, well-meaning people, offer us advice, but with no real understanding of the situation. They see a busy pub and think that we are rolling in it.

“So, a succinct breakdown for you - we used to make about 84p a pint in 2009. Now it’s around 12p. The combined energy bill has risen (again pre-Covid) from £600 a month to £2,800. The amount we need to cover what it costs just to open the pub door has increased by about 29% since pre-Covid.

“So, to cover the shortfall as such, we increase the selling price and we have to cut back on other areas, like staff, and absorb that work ourselves.”

Colette said that it was frustrating to hear of other landlords having to close their doors due to rising costs and the VAT burden on pubs - especially when their venues were once thriving.

She said: “Inevitably, the pubs are struggling to pay the operating costs. It’s usually the energy bill that sends them ‘bust’ or the VAT.

“Knowing what you know about the disgusting amounts of profit that these big energy firms are making whilst freezing pensioners, knowing what you know about the unfair VAT burden, and knowing that Rishi Sunak’s wife alone avoided paying around £15 million to the public purse, you’ll understand how angry we are when we hear a friend’s once thriving pub has closed due to bankruptcy. It’s usually unpaid VAT that does it.

Colette added that VAT cuts would help reduce the pressure on landlords up and down the country - helping to rectify the increasing number of pub closures.

She said: “I hope this offers you some clarity as to why all the pubs are closing - two a week currently - and no amount of ‘hard work’ is going to address this or put more disposable cash in your pocket.

“It’s not just pubs. This analysis applies to the majority of the UK’s independent business owners.

“Only the government can do this, it’s not rocket science. Cut the VAT for the love of god. The day the last pub calls last orders is the day England dies - save the pubs.”