Jess Brown-Fuller warns rural pubs face “last chance saloon”, as soaring costs threaten communities

The Liberal Democrat MP for Chichester, Jess Brown-Fuller, has warned that rural pubs and hospitality businesses are on “their last legs”, as spiralling costs and looming business rates hikes push vital community hubs towards closure. 

Last week, Jess Brown-Fuller visited The Horse & Groom in East Ashling to meet publican John Ayton MBE and hear first-hand how rising costs are squeezing even well-used, much-loved village pubs. Despite strong community support, John explained that the pub is operating on tight margins. 

Energy bills have risen by up to 200 per cent, food and drink costs continue to climb, and changes to Employer National Insurance Contributions have increased the pub’s wage bill by around 15 per cent. On top of this, business rates are set to almost triple from April 2026 - rising from around £11,000 a year to approximately £32,000 - which John described as a £20,000 annual tax hike that could prove devastating. 

Jess also raised concerns about the impact of National Insurance thresholds on employing young local people, many of whom rely on pubs for their first job. 

Jess Brown-Fuller MP said: 

“This really is the last chance saloon for rural pubs like The Horse & Groom. From soaring energy bills to the Government’s jobs tax and a looming explosion in business rates, these businesses are being squeezed from every direction. 

“I know how brutal these pressures are because I have lived them myself as a former restaurant and bar owner. When a pub is busy, popular and successful, but is still this vulnerable, it is clear the system is broken. 

“Ministers must urgently provide clarity and real support. Without action - on business rates, energy costs and VAT - we risk losing the pubs that hold our villages together.” 

John Ayton MBE, owner of the Horse and Groom in East Ashling said: 

“To communities everywhere: support your local pub. If you do not, it will disappear. And once it is gone, it will not come back.” 

The Liberal Democrats warn that hospitality businesses have faced years of compounding pressures, including the pandemic, the energy crisis, staff shortages and a broken business rates system. UK Hospitality estimates that one-third of hospitality businesses are operating at a loss, six in ten have cut jobs, and almost two-thirds have reduced staff hours. 

The Liberal Democrats are calling on the Government to act now by exempting hospitality SMEs from the Employer NIC increase, reforming business rates so independent pubs are not penalised in favour of large chains, delivering fairer energy prices, and cutting VAT on food and drink served in pubs. 

Jess Brown-Fuller has also signed Parliamentary Early Day Motions calling for meaningful business rates reform and a VAT cut for hospitality, and has raised these concerns directly with the Chancellor following the Budget. 

Jess Brown Fuller MP and owner John Ayton MBE at the Horse and Groom in East Ashling