Starmer accused of waging new ‘war on countryside’ after axing grant that saves local pubs

There is concern that cherished local pubs will be forced to close after a government grant was cancelled, in yet another blow to rural communities

Prime Minister Sir Keir Starmer speaking during Prime Minister’s Questions (House of Commons/PA) (PA Wire)

Sir Keir Starmer has been accused of waging “war on the countryside” after the government quietly scrapped a grant that helped local groups buy closure-threatened pubs.

The Community Ownership Fund, which launched 2021 with the aim of handing out £150m worth of grants by the end of 2025, was cancelled early with £135m having been allocated to date.

As the number of pubs in England and Wales sits at a record low, with more than 400 closing their doors for good in 2024 alone, there is growing concern in rural areas that the cancellation of the fund just days before Christmas will damage communities across the country.

The Fox Inn, Ryton, benefitted from the fund (Supplied)

Mo Metcalf-Fisher, director of external affairs at the Countryside Alliance told The Independent: “In the countryside, pubs are more than just a place to have a pint and packet of crisps: they are community hubs that are on the frontline of preventing social isolation in some of the most remote parts of the country.

“It is widely understood that pubs are part of the rural fabric and must be protected.”

Tory MP Kevin Hollinrake, shadow communities secretary, accused Labour of “pushing pubs to the brink of extinction” and “waging war on the countryside”.

It comes amid growing discontent in rural areas after the government extended inheritance tax to cover agricultural properties at last year’s budget, with thousands of farmers warning they will have to sell off family-owned farms to afford the tax.

And last week, Labour was accused of “treating farmers with contempt” after it scrapped the sustainable farming incentive (SFI), a scheme that pays farmers in England for environmental practices.

The COF, which ran from 2021 to 2024, awarded £135 million to 409 projects across the UK, including pubs, youth centres, lidos and hospices.

As rural pubs battle the impact of the national insurance hike announced in October, Mr Metcalf-Fisher said the project was a “vital lifeline to those rural communities wanting to band together to save these precious institutions”.

“It is incredibly disappointing that the government quietly announced the closure of the fund just before Christmas, particularly in the context of a breakdown in relations between the countryside and Whitehall following the family farm tax.”, he said.

“It is vital that the government communicate how they intend to roadmap a way forward on community funding, offering hope for the future of precious rural pubs. Every pub that shuts is a further gutting of our precious countryside.”

One community group, which is purchasing The Fox Inn in Ryton after receiving a grant of £299,300 - believes the fund is critical to support local pubs and the communities they serve.

The pub was closed two years ago but the grant has allowed them to cover half of the costs of purchase and renovation.

Farmers protest in Westminster over changes to inheritance tax rules (Jonathan Brady/PA) (PA Wire)

The group’s secretary, Helen May, told The Independent: “Local pubs are often the heart of the community, providing a space for people of all backgrounds and ages to meet, socialise and have company.

“In areas such as Ryton in Shropshire, they are critical to combat rural isolation.”

The money, she said, will also provide “vital working capital to help fund the operating costs in the first 12 months, mitigating cash flow challenges that new businesses have”.

While the government has promised to introduce a Community Right to Buy scheme, handing local communities the right to purchase empty shops, pubs and community spaces, they have been urged to go further and provide funding to support the scheme.

“People love their local. It is a symbol of local pride and a place where people can come together and connect with others, at a time when people often feel lonely and isolated”, said Josh Westerling of Power to Change, a group campaigning on community businesses.

“The government knows this, which is why it’s introducing a Community Right to Buy to help local people save places they care about like local pubs. But for this to work effectively, we need new community ownership funding so every place can take advantage of this new power.”

Mr Hollinrake added: “Pubs are the beating heart of Britain’s towns and villages, especially in the countryside.

“Not content with hiking taxes to record levels, raising business rates and axing the takeaway pint, this will see pub closures across the countryside rocket. The Conservatives’ campaign to Save the Local from this dreadful Labour Government is now more important than ever.

“Pushing pubs to the brink of extinction is the latest bright idea from city-centric lefties determined to wage war on the countryside.”

The government has been approached for comment.