The Oxenham Arms in South Zeal could face a 76 per cent hike in business rates, following government policy to phase out business rates relief and increase businesses' rateable values.

The owner of the 12th-century Grade II* listed pub, Simon Powell, said he will see the pub’s rateable value (a Government estimate of the annual rent) rise from £22,000 to £36,500 in the next financial year starting on April 1, 2026. This will lead to an increase in its business rates bill, adding to financial challenges already exacerbated by rising energy bills, staffing costs, and VAT obligations.

In a show of support, Sir Mel Stride visited the pub. He 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."

Business rates are fixed regardless of a business's earnings, and increases are likely to affect rural pubs more, as they have lower footfall. Although the Government has announced changes intended to lower business rates, rising rateable values and the withdrawal of existing relief mean many pubs are still facing higher overall bills.

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 Sir 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.