The Oxenham Arms, a 12th-century Grade II* listed pub, at the heart of village life in South Zeal, is facing a staggering potential 76% hike in business rates.
Central Devon MP, Sir Mel Stride, met with owner Simon Powell to hear first-hand how the Chancellor’s decision to phase out business rates relief and an increase in rateable value for the public from £22,000 to £36,500 next year is likely to lead a huge increase in its business rates bill. This is adding to the ongoing VAT pressures and increased national insurance affecting pubs and hospitality businesses across rural Devon.
Mr Powell outlined the challenges of rising energy bills, staffing costs, and VAT obligations that limit investment and put pressure on local businesses vital to village life.
Following the visit, Sir Mel Stride said: "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. 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."
Owner Simon Powell said: "Running the Oxenham Arms is hugely rewarding but comes with its challenges. VAT, energy costs and compliance obligations all add up, and many rural pubs are struggling to stay viable. I’m grateful to Sir Mel for visiting today, listening to our concerns, and recognising the important role pubs like ours play in keeping villages alive."
The visit forms part of Mel’s ongoing engagement with the hospitality sector to understand how Government policy is affecting rural communities and what further measures could support local businesses.
