A popular Cotswolds pub says it is being pushed to the brink, with drastic price hikes and new reduced hours set to hit customers in the new year.
The landlord claims his business has been left with no realistic way to stay afloat, accusing Rachel Reeves of waging a "war on small businesses."
This comes after Chancellor Rachel Reeves delivered her second Budget to the House of Commons on November 26 – unveiling a series of tax rises and raising the national minimum wage.
The Ship Inn at Brimscombe, known across the Stroud Valleys for its Sunday roasts and canalside location, will raise food and drink prices by between 15 and 20 per cent from January 1.
Staff hours will be cut at the same time, in what 41-year-old landlord Wesley Birch describes as a last attempt to avoid liquidation and "make sacrifices and changes" ahead of what he calls the Budget's economic fallout.
The pub's business rateable value is forecast to jump from £8,000 in 2025-26 to £31,750 from April 2026 — a rise Birch says leaves him with no alternative.
"That is nearly a 300 per cent increase!" Mr Birch said.
The landlord outlined how multiple cost pressures were hitting simultaneously. The minimum wage for workers under 18, who made up half the pub's workforce, has jumped by 24 per cent between April 2025 and 2026.
National Insurance contributions have also climbed by approximately £11,000 this year, adding further strain to the business.
Cost of a pint could DOUBLE in less than a decade as Britons warned of steep rises | PA"We were hoping for some form of relief in the hospitality sector but what we received was a demand for more money and business rates which are almost crippling," Mr Birch explained.
He added that the pub had absorbed every possible cost increase to maintain affordable prices for customers.
"However, without this increase, our beloved community pub would no longer be a viable business and would face liquidation," Mr Birch said.
The venue's operating schedule will be significantly curtailed.
Rachel Reeves has been accused of damaging businesses | GB NEWSDrinking hours from Monday to Wednesday will now run only from 3pm to 7pm, excluding quiz nights, compared to the previous 3pm to 11pm. Food service will be restricted to Thursday through Sunday.
Mr Birch revealed the workforce has already shrunk dramatically over the past 18 months, falling from 75 employees to 48. Staff who depart are not being replaced.
"Come April next year we will need to be down to around 40 in order to be viable," he said.
The landlord noted prices had remained unchanged for two years before this announcement, but the business could no longer absorb rising costs.
The financial pressures facing The Ship Inn reflect a broader crisis across the hospitality sector.
Analysis from the British Beer and Pub Association has found that pubs nationwide face an additional £150million in costs despite the government lowering the business rates multiplier in the Budget.
The trade body calculates that bills will increase by £3,867 for a typical small pub next year
| GETTYThe trade body calculates that bills will increase by £3,867 for a typical small pub next year, while medium-sized establishments face rises of £11,085.
Emma McClarkin, chief executive of the BBPA, said: "Once you cut through all the warm words the cold hard truth was that this Budget let down pubs all across the country."
UK Hospitality has warned that pubs will see their business rates rise by an average of 76 per cent, with chief executive Allen Simpson stating closures would inevitably follow.