Pubs across East Yorkshire are facing mounting financial pressures in the wake of Labour’s most recent budget, with local MP Graham Stuart warning that the measures threaten the future of much-loved community institutions.
Graham, the Conservative MP for Beverley and Holderness, has accused Chancellor Rachel Reeves of delivering a punishing blow to hospitality businesses through a combination of tax increases, wage hikes, and the removal of key reliefs.
Under changes introduced in the spring budget, the minimum wage has risen to £12.21 for over-21s, while employer National Insurance contributions have increased by 1.2 percentage points. At the same time, the threshold at which National Insurance is paid has been lowered from £9,000 to £5,000 — a move that Graham says disproportionately affects part-time workers, who make up the majority of hospitality staff.
According to estimates, the average pub could now be facing up to £21,000 in additional annual costs. Employment costs alone could rise by £13,500, leading many businesses to reduce staff numbers in order to remain viable. For a typical pub employing six part-time workers, Graham warns that two could face redundancy.
“The Chancellor is putting enormous pressure on small businesses,” he said. “Rather than supporting pubs, which are the backbone of our rural communities, Labour is making it harder for them to survive.”
In Beverley and Holderness, Graham said the removal of hospitality rates relief means pubs could see an average increase in business rates of around £7,500. The British Beer and Pub Association has warned that the combined effect of these policies could lead to the cost of a pint rising by up to 21 pence.
“Without our pubs, villages across the constituency risk losing vital community hubs — places where people come together, where friendships are forged, and where young people get their first jobs,” Graham said.
He added that the policy direction from Labour was not only short-sighted but actively harmful to employment: “Rachel Reeves will be personally responsible for decimating part-time employment through her jobs tax. It’s time Keir Starmer acted and replaced her with someone who understands how to support businesses.”
Graham said he would continue to fight for East Yorkshire’s pubs and urged the Government to reinstate rate relief and reduce the cost of employing staff.