At a glance
Restore Britain's paper Restoring the British Pub (January 2026) sets out tax, employment and licensing reforms that it says the current government could adopt straight away to slow pub closures. The headline measures are business rates relief, a cut in VAT on hospitality to 12.5% and more generous draught duty relief.
Key points
- Reinstate the 40% business rates relief for hospitality and freeze rateable value increases, with a 30p multiplier and a rural exemption also proposed
- Cut VAT on all hospitality sales from 20% to 12.5%, possibly with rebates for pubs that host community events
- Freeze alcohol duty, raise Draught Relief from 9.2% to at least 20% and widen relief for small British producers
- Extend the Enterprise Investment Scheme to investors who reopen or rescue closed and failing pubs
- Raise the employer National Insurance threshold for hospitality staff from £5,000 to £15,000 and calculate contributions annually
- Pay completion and retention bonuses for hospitality apprenticeships and open them to all ages
- Let approved pubs serve low-strength draught to 16- and 17-year-olds, and require clear labelling of how meat was slaughtered
Overview
Restore Britain published Restoring the British Pub: Measures for Preserving the Heart of Britain (opens in a new tab) on 7 January 2026, while it was still a movement rather than a registered party. The paper was written by Restore Britain policy staff, including a cider maker with 25 years in hospitality, together with Rupert Lowe. It draws on trade body data and interviews with publicans, brewers and cider makers.
The party says Britain has lost between a quarter and a third of its pubs since 2000, with closures continuing at roughly one a day and independent and rural pubs hit hardest. The paper attributes this to a combination of pressures: business rates on large, often energy-inefficient buildings, 20% VAT on almost everything a pub sells, high alcohol duty, the April 2025 rise in employer National Insurance, energy costs and inflexible regulation.
The paper deliberately limits itself to measures it describes as realistic for the government of the day. Rupert Lowe said the party “would go far further if possible” but wanted proposals that “may actually be deliverable for this Government, at this time”. In the longer term the paper says Restore Britain would favour abolishing business rates altogether, and the party's Objectives (opens in a new tab), published when it became a party in February 2026, include abolishing business rates for small businesses as part of a plan to restore town centres.
How it would work
Business rates and VAT
The paper argues that the business rates changes taking effect from April 2026, the end of the temporary 40% Retail, Hospitality and Leisure relief combined with a revaluation, leave the typical community pub facing a much higher bill. It calls on the government to reinstate the 40% relief and freeze the rateable value increases. Its policy heading also proposes a multiplier of 30p for pubs, with an additional rural heritage exemption.
On VAT, Restore Britain supports cutting the rate on all hospitality sales from 20% to 12.5%, pointing to the temporary reduced rates used during the Covid pandemic. The paper suggests tying the relief to “community credits”: rebates for pubs that host local events such as quizzes and charity nights, verified through a simple app, along the lines of French tax credits for cafés that put on cultural events.
Alcohol duty and British producers
Restore Britain would freeze alcohol duty and backs the independent brewers' association SIBA in calling for Draught Relief, the lower duty rate on drinks sold on draught, to rise from 9.2% to at least 20%.
A “Buy British” scheme would give small alcohol producers, including brewers, cider makers, distillers and wineries, a tapered duty discount of up to 50% on products sold to hospitality, based on the existing Small Producer Relief and extended to higher-strength drinks. The paper argues this would help rural orchards and barley growers as well as pubs.
Investment, jobs and training
The Enterprise Investment Scheme, which gives investors 30% income tax relief, would be extended to pubs that have closed within the past three years or are at imminent risk of closure, defined as loss-making for two years or more. Money raised would have to go on reopening, refurbishment or new offerings such as food and events rather than debt repayment, with anti-abuse rules, a three-year trading requirement and priority for rural and underserved areas.
The employer National Insurance threshold for hospitality staff would rise from £5,000 to £15,000, which the paper says would in effect reverse the 2025 increase. Contributions would be calculated annually, as PAYE is, so that seasonal workers are not treated as if they earned their summer pay all year. Employers would also get a one-year National Insurance holiday when hiring someone who is out of work or on benefits.
Hospitality apprentices would receive a £1,500 bonus on completion and their employer £1,000, with a further £2,500 split between them if the apprentice stays with the same local employer for two years. The paper also proposes shorter minimum durations, opening apprenticeships to all ages and adding hospitality to the priority sectors of the new Growth and Skills Levy.
Licensing, labelling and energy
In England and Wales, 16- and 17-year-olds may currently drink beer, wine or cider with a meal only if an adult buys it and sits with them. The paper proposes that pubs could apply for a licence variation allowing them to serve draught drinks under 4% ABV to 16- and 17-year-olds without an adult, with a limit on drinks per visit and approval and training overseen by local licensing departments. It calls this a “Youth Pint Pact”. The paper also says any move to tighten drink-driving rules should be resisted, because many rural pubs can only be reached by car.
Pubs would label clearly how the meat they serve was slaughtered, including whether the animal was stunned, which the paper presents as support for British farming standards. On energy costs, the paper said the issue was beyond its scope; the party later set out its approach in its energy policy.
Questions and answers
Is this what a Restore Britain government would do?
Not exactly. The paper presents its measures as steps the current government could take immediately, and says Restore Britain would go further if it could, for example by abolishing business rates altogether. It was published in January 2026, before Restore Britain became a political party.
Why does the party focus on pubs?
The paper describes pubs as essential civic institutions rather than simply businesses: places where communities meet, young people learn skills and money circulates locally. It argues that losing them weakens local economies and deepens social isolation, especially in rural areas.
Would 16-year-olds be able to drink in pubs on their own?
Only in pubs that opt in and are approved by their local licensing department, only for draught drinks under 4% ABV, and with a cap on drinks per visit. Today they can drink only with a meal bought by an adult who is with them.
How does this fit with the party's wider economic plan?
The pub paper predates The Wealth of Our Nation (opens in a new tab), the party's August 2026 economic plan, which does not repeat the pub-specific measures. See economy and taxation.
Sources
Restore BritainOfficial
Restoring the British Pub: Measures for Preserving the Heart of Britain (PDF) (opens in a new tab)Published
Restore BritainOfficial
Objective: Restore Britain's Social and Cultural Foundations (opens in a new tab)Published
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