UK Pubs and Retail Face 82p Tax Per £1 Profit, Highest Burden of Any Sector

UK hospitality and retail businesses paid £62 billion in taxes in the financial year to April 2026, the heaviest burden of any major economic sector, according to research commissioned by the British Retail Consortium. The taxes equal 82p for every £1 of profit in hospitality and 72p in retail, versus an average of 50p across 11 sectors examined and 40.5p for banking. The analysis, by Flint Global, attributed the load to business rates, VAT, employer National Insurance contributions and corporation tax. Retail employment has fallen by 122,000 in two years and hospitality by 93,000. Pubs are closing at more than one a day in 2026, with one in seven high street premises vacant. Prime Minister Andy Burnham on September 30 announced a 20% business rates cut for pubs, clubs and live music venues from April 2027, worth about £1,100 annually per pub.