The boss of Admiral Taverns has claimed business rates will “kill off” pubs as well as town centres unless the tax is fundamentally reformed.

Admiral Tavern chief executive Chris Jowsey (pictured) said the government must deliver on its pledge to overhaul the business rates system, which he said “penalises bricks and mortar” firms in favour of online retailers.

Admiral, who own 1,365 community pubs in the UK, has posted increased profits, defying the wider gloom facing the hospitality sector.

Chancellor Rachel Reeves announced emergency business rates support last month after budget changes to the levy caused the sector to warn it was on the verge of collapse.

Jowsey said spiralling costs mean a wholesale rethink of business rates is the only way out for Britain’s pub sector.

He said: “Every party over the last 20 years has promised to reform business rates, and none of them have done it.

“This government has said they are going to do it over the next couple of years, but they need to deliver on that promise. If they continue to tax business rates in the way that they do then they won’t just kill off pubs, they’ll kill off the high street as well.”

Jowsey said the current business rate system, which is tied to property value, means online retailers pay little compared to pubs despite “generating very large profits”.

“If you do that you’re just penalising bricks and mortar, and those kind of businesses on the high street will suffer accordingly,” he said.

The rising tax and employment costs facing pubs are masking a resurgent appetite for hospitality and nightlife, Jowsey believes.

“The cost base is growing faster than revenue, so it’s squeezing the ability to make a profit out of the trade. That’s the fundamental challenge,” he said.

Admiral Taverns tries to keep its costs low by offering little or no food and investing in its sustainability measures to cut overheads, Jowsey said.

The group invested £13.5m in its pubs in the last financial year and saw revenue rise by eight per cent to £210.4m, boosting underlying adjusted profit by 13 per cent to £68.9m.