Central Devon MP visits historic South Zeal pub facing sharp business rates rise

A historic Devon pub could face a significant rise in its business rates bill following changes to Government relief schemes, prompting a visit from the Shadow Chancellor of the Exchequer.

The Oxenham Arms in South Zeal, a Grade II* listed pub dating back to the 12th century, is facing a potential 76 per cent increase in business rates. 

READ NEXT: Snow and ice bring bin and waste collection disruption to Tavistock and Dartmoor villages

The rise is linked to the planned phasing out of business rates relief and an increase in the rateable value threshold from £22,000 to £36,500 next year.

Currently, there is a 40 per cent Retail, Hospitality and Leisure business rates relief, which was originally introduced during the pandemic to support struggling sectors, 

However, this is being phased out after March 2026, and will be replaced by permanently lower RHL multipliers that set reduced tax rates for eligible properties.

The government has introduced transitional relief to cap sudden increases as the rates system changes, yet businesses warn that without sufficient support, the end of the old relief could mean significantly higher costs and financial pressure for operators.

Central Devon MP Sir Mel Stride visited the pub to meet owner Simon Powell and discuss the likely impact of the changes. 

Mr Powell said rising costs were already putting pressure on the business, including higher energy bills, staffing costs and VAT.

Shadow Chancellor Sir Mel detailed how the pub plays an important role in the village. 

“The Oxenham Arms is a real mainstay for the local community and a vital part of the local economy. Rural pubs are facing intense pressures, made worse for historic venues with high maintenance costs.”

He added that hearing directly from the owner would help him raise the issue in Parliament. 

“Hearing directly from Simon about the real-world impact of these rising costs will help me continue making the case in Westminster that the Chancellor should be doing more to support businesses like this,” he said.

Mr Powell said running a rural pub had become increasingly difficult:

“VAT, energy costs and compliance obligations all add up, and many rural pubs are struggling to stay viable.” 

The visit is part of Sir Mel Stride’s wider work with hospitality businesses to understand how changes to Government policy are affecting rural communities across Devon.