Dartmoor pubs respond to new business rates cut as costs continue to rise

Publicans on Dartmoor say newly announced government support for pubs will not be enough to offset rising costs, warning that village pubs remain under severe financial pressure.

Comments have followed a government announcement confirming a 15 per cent cut to new business rates bills from April, followed by a two-year freeze, alongside a review into how pubs are valued for business rates.

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The announcement comes several months after The Moorlander reported warnings from Dartmoor publicans that rising costs and business rates could force some village pubs to close without further government support.

The Moorlander revisited the two pubs we spoke to back in October, to see how they felt the  new measures would impact them and the hospitality sector as a whole.

Dawn-Marie Michelin, who runs the Horse & Groom in Bittaford, said the measures would make little difference to her pub’s overall position.

“Every little helps, so they say,” she said. “But even with 15 per cent off the new business rates, it’s still a huge increase for us, going from £5,500 to a minimum of £9,200 in April.”

She said the increase meant the business would need to find an extra £3,700 in profit each year just to cover that one bill.

Mrs Michelin added that business rates were only one of several rising costs facing village pubs.

“We then have a 20 per cent increase on gas and electric,” she said. “From February, alcohol duty on non-draught products is also going up in line with inflation, and breweries are putting prices up between 3.5 and 7.2 per cent.”

She also highlighted the rise in staffing costs, with the National Living Wage increasing to £12.71 an hour from April.

“None of that includes increases from food suppliers and dry stock,” she said. “It’s never ending.”

ABOVE: An empty bar at the Horse and Groom (Image: Dawn-Marie Michelin)

Mrs Michelin described the government’s announcement as limited in its impact on independent rural pubs.

“I feel it’s more of a half turn than a U-turn,” she said. “It feels like it’s more to try and shut publicans and pub supporters up than to actually help independent pubs survive.”

She said many pubs were responding by cutting opening hours, and questioned how helpful proposed licensing changes would be for village venues.

“Opening late is no help at all, especially if your local council requires door supervisors after 11pm,” she said. 

“The extended hours are only for some sporting events, and we’re not a sports bar because of the huge subscription costs.”

Mrs Michelin said the Horse & Groom remains open by relying heavily on family labour.

“This isn’t just our place of work; it’s our family home,” she said. “My husband and I don’t take a wage. We do the work ourselves, with our son working full time and one part-time member of staff.”

She added that the pub’s future depends heavily on local support.

“At the end of the day, this pub isn’t just ours, it’s the community’s,” she said. “Without our customers, there would simply be no pub.”

The Moorlander also spoke again to the Ring of Bells in North Bovey, where owner Richard Edlmann said the newly announced support would not resolve the underlying challenges facing rural pubs.

“For us personally, we’re already looking at changing how we operate,” he said. “Across the hospitality sector as a whole, I think we’ll continue to see fewer people employed, and more pubs closing.”

Mr Edlmann said a lack of disposable income among customers remained the biggest issue, particularly in rural communities.

“People simply don’t believe they have money to spend,” he said. “Rural areas are being hit hard, and I don’t think the current government really understands the countryside. We have an older population here, and confidence is very low.”

He added that while he sympathised with the wider economic pressures facing the government, the situation for village pubs was becoming increasingly difficult.

“Wealth is down here in the South West,” he said. “So what do you tax? For us, business rates are around two per cent of turnover, it’s an incredibly difficult situation.”

Mr Edlmann said consumer habits had changed significantly in recent years, with rising costs affecting both pubs and customers.

“Trends have shifted, and costs have increased across the board,” he said. “Opening late doesn’t matter to us, if anything, we’re looking at shutting earlier.”

ABOVE: The Ring of Bells in North Bovey serves a wide range of patrons in its rural community (Image: Ring of Bells)

He said the Ring of Bells’ focus was on maintaining its role as a community space rather than chasing late-night trade.

“Our aim is to provide escapism,” he said. “That might be families who don’t want to cook, or older people living alone who want human interaction.”

While the Ring of Bells is considering bringing back events, Mr Edlmann said they were unlikely to be major money-makers.

“They’re more about marketing the pub and keeping it visible in the community than generating big profits,” he said.