Rachel Reeves is set to smack landlords with a "nice pub tax" on some of Britain's beloved country inns.
Tax officials have been handed new guidance by HMRC which will see pubs in "character properties", those nestled in more "attractive locations", or ones which play a vital role in the community, hit with higher business rates.
The Conservative Party has branded the measure a "nice pub tax," warning it threatens the survival of cherished locals.
The guidance represents a significant shift in how nearly 40,000 pubs will be assessed during this year's revaluation exercise, with industry figures cautioning that many venues simply cannot absorb the anticipated increases.
Establishments by rivers or with scenic views will attract particular scrutiny from assessors, as will those offering outdoor facilities including children's play areas or generous parking.
Gastropubs serving premium-priced menus also face elevated valuations, alongside venues with well-designed layouts intended to maximise food revenue.
Urban pubs are not exempt from the squeeze either, with those offering breakfast service, daytime coffee, or late-night trading also in line for higher assessments.
The HMRC guidance specifically notes that rural properties should be "character properties maintained to a high standard with good levels of amenity" when determining their tax bracket.
Rachel Reeves is set to smack landlords with a 'nice pub tax' on some of Britain's most beloved country inns
|GETTY
Shadow Communities Secretary Sir James Cleverly launched a scathing attack on the Government's approach, declaring: "Labour's business rates raid is heaping misery on to struggling pubs across England.
"Having promised to get bills down, Rachel Reeves has instead sent them soaring."
The senior Tory accused ministers of targeting "some of Britain's best boozers" for special punishment.
"Under Labour, it will be last orders for countless beloved watering holes," Sir James warned.
PUBS IN PERIL - READ THE LATEST:
'Under Labour, it will be last orders for countless beloved watering holes,' Sir James Cleverly warned
| HOUSE OF COMMONSThe Conservatives have pledged to eliminate business rates entirely for thousands of pubs, restaurants and shops.
The revaluation process assigns each pub a rateable value based on its estimated worth as a business, with landlords then paying a proportion of this figure in tax.
During the previous assessment, valuations reflected pandemic-era conditions, resulting in lower bills for many establishments.
This year's exercise is expected to produce dramatically higher figures, with the Chancellor anticipated to raise an additional £12billion from the levy before the next review in 2029.
Establishments boasting river frontages or scenic views will attract particular scrutiny from assessors
|GETTY
Allen Simpson, the chief executive of UKHospitality, said: "We have long called for complete reform of the broken business rates system, which has seen hospitality pay far more than its fair share for decades."
“While an ongoing review of valuation methodology for pubs and hotels is positive, we still need the Government to deliver its commitment to lower rates bills for the entire hospitality sector.
"That is one of the critical ways to reduce hospitality’s cost burden, which is the highest in the economy.”
But a Government spokesman claimed Labour was "backing Britain’s pubs".
The Government is "cutting this year’s business rates bills by 15 per cent followed by a two-year freeze, extending World Cup opening hours and increasing the Hospitality Support Fund to £10million to help venues grow," he aded.
“HMRC’s expert surveyors use standard industry methods which have been used to value pubs for decades.”
Our Standards: The GB News Editorial Charter