Stuart Anderson MP has slammed a multi-billion-pound hike in business rates, which he says will "devastate" small businesses in South Shropshire.
At the Autumn Budget on Wednesday 26th November 2025, the Chancellor Rachel Reeves announced a new discount that will see retail, hospitality and leisure businesses save just 5p for every £1 paid in business rates.
This is only a quarter of the 20p discount that the government had previously legislated for. It does not offset the above inflation increases in business rates that will take place next April.
This follows last year's decision to slash business rates relief for the hospitality sector from 75% under the Conservatives to 40% under Labour. This support will now end completely in April 2026.
In a letter to the Chancellor Rachel Reeves calling for the changes to be scrapped, Stuart has said that these decisions will "devastate" thousands of pubs, hotels, shops, and restaurants in South Shropshire.
Stuart said that last year's reduction in business relief has meant that an average pub has already had to pay an extra three thousand pounds since April 2025.
The Government has said that a £3.2 billion Transitional Relief Scheme will mitigate the impact of the changes. This means that next year's increase will be capped to a maximum of a 30% increase, or 15% for an average pub.
However, analysis from trade body UKHospitality has shown that the average pub’s business rates, even with the reduced discount and transitional relief, will increase 15% next year – costing an extra £1,400.
Meanwhile, a hotel will be paying an extra £28,900 in rates next year. Additionally, the transition relief will have almost entirely tapered away by 2028/29.
By then, an average pub’s business rates will have increased by 76% (or £12,900) to £111,300. An average hotel’s business rates will have increased by 115% (or £65,000) to £205,200.
UKHospitality has warned that as many as 30,000 pubs, restaurants, and hotels in England could close as early as next year due to the changes.
By contrast, savings identified by the Conservatives would have seen business rates abolished for 250,000 businesses in the retail, hospitality, and leisure sector.
This would have delivered substantial savings that could then have been invested in better premises, more staff, and lower prices for customers.
The Conservatives Plan:
- Abolish Business Rates for thousands of retail, hospitality, and leisure businesses.
- Cheap Power Plan to bring down bills for business, including an average of £5,100 for restaurants.
- Plan for Stronger Policing - 10,000 more police officers and hotspot policing to tackle retail crime.
- Supporting Small Businesses - making it easier for businesses to operate, including new businesses.
- Defending key pillars of the local community, such as our pubs, post offices, and pharmacies.
Stuart Anderson MP said:
"Retail, hospitality, and leisure businesses are the backbone of our rural economy in South Shropshire. So, I am greatly concerned that Chancellor's above-inflation hike in business rates will devastate these businesses, including our pubs, hotels, shops, and restaurants. Having last year halved business rates relief for these businesses, the Chancellor has now announced that this support will end completely in April 2026. At the same time, business will be paying tens of thousands more in businesses rates over the next three years due to eye-watering increases. By contrast, savings identified by the Conservatives would have enabled us to end rates for 250,000 of these businesses altogether. This would have enabled them to invest in better premises, more staff, and lower prices for customers. I believe that the Chancellor's changes must be scrapped."
Tim and Jane Vaughan, from The Queens Ludlow, added:
"The Government claims to understand the pressures on high-street businesses, but their so-called rate reductions are meaningless when the revaluation has pushed our costs up even more. It’s totally unsustainable for businesses like our own. The Government doesn’t grasp the reality of the local economy, and if this continues, many pubs simply won’t survive."
