Cafe Owners Frustrated Over Business Rates Cut Exclusion 2026

Independent cafe owners are expressing frustration over the exclusion of their businesses from the recent business rates cut announced by Greater Manchester Mayor Andy Burnham. The 20% reduction, worth around £100 million a year, will only support specific high street sectors: pubs, social clubs, and live music venues across England. This leaves cafes, which are vital community hubs and small business pillars, without the financial relief they desperately need.

Why Cafes Are Excluded from the Business Rates Cut

The targeted package, taking effect from next April, is designed to bolster certain segments of the high street. However, Ferdinand Geus of Sheba Coffee, a Yemeni coffee supplier, argues that independent cafes face many of the same commercial pressures as pubs. “Burnham says he wants to support high streets but independent cafes are more than retail businesses; they are workplaces, meeting places and important parts of their local communities,” Geus said. “Supporting pubs while excluding cafes risks creating an artificial distinction between businesses facing many of the same commercial pressures.”

The Financial Impact on Cafe Owners

For a typical pub, the cut will save an estimated £1,100 next year. For Geus, that amount would have allowed his business to “grow and survive.” Sheba Coffee supplies Yemeni beans to cafes on five continents, supporting around 3,000 small family-owned farms in Yemen. Yet rising energy bills and a soaring cost of living have forced the company to hold back expansion. “Coffee is a luxury and people are cutting back,” Geus explained. “To survive at this point in our business journey, we need to expand – to employ more people – but we can’t do that.”

Hakan Elbir, founder of the deaf-run Dialogue Cafe at the University of East London, echoed these concerns. His inclusive social enterprise employs deaf and hard of hearing baristas. “We’ve been trying to hold down our prices – despite the rise in the cost of coffee beans, which came on top of all other cost increases,” Elbir said. The exclusion from the business rates cut adds another hurdle for businesses that already operate on thin margins.

Comparison of Business Rates Relief: Pubs vs. Cafes

Key Takeaways for Independent Cafe Owners

• Business rates cut excludes cafes, pubs get £1,100 average saving.
• Cafes face same rising costs (energy, rent, supplies) as pubs.
• Exclusion hurts inclusive and community-focused businesses.
• Advocacy needed: contact local councils and MPs to push for fairer relief.
• Alternative support: apply for small business grants or energy bill discounts.

What Can Cafe Owners Do?

While the business rates cut does not currently include cafes, business owners can take steps to reduce their burden. First, review your property’s rateable value and ensure you are not overpaying. Second, explore the Small Business Rates Relief scheme, which may still apply to some cafes with a rateable value below £15,000. Third, join trade associations like the British Coffee Association or UKHospitality to lobby for broader relief.

FAQ

The frustration among cafe owners like Ferdinand Geus and Hakan Elbir underscores a broader issue: many small independent cafes are struggling to survive without targeted government support. As the cost of living continues to rise, the exclusion from the business rates cut may force more cafes to close, harming not only their owners but the communities they serve.