Pubs are set to receive relief from upcoming increases in business rates as the Government prepares to make adjustments to alleviate financial burdens on struggling establishments. The Treasury is on the verge of announcing measures to support cash-strapped pubs, with changes to business rates and simplification of licensing regulations expected to be unveiled shortly.
The decision follows Chancellor Rachel Reeves instructing officials to explore assistance for the hospitality sector before the holiday season in response to strong opposition from businesses. Concerns have been raised by the industry regarding the potential closure of many pubs due to escalating costs, leading to some Labour MPs being denied entry to local pubs by upset landlords.
Originally, adjustments to business rates were scheduled for April, coinciding with the phasing out of a Covid-related discount, which would have resulted in a substantial rise in bills for pubs. Ms. Reeves reduced the relief provided since the pandemic from 75% to 40% at the Budget, with the support set to end completely in April.
The proposed changes would have also affected all non-residential properties, establishing business rates based on property rental costs in 2024 and projected turnover. Ms. Reeves assured “permanently lower” rates for over 750,000 retail, hospitality, and leisure properties, alongside a £4.3 billion support package over three years. However, the sector raised alarms over pubs facing significant rate hikes potentially doubling or tripling their annual bills.
This reversal by the Government follows previous concessions made to address concerns over inheritance tax hikes for farmers and adjustments to winter fuel allowance and disability benefits. Emma McClarkin, CEO of the British Beer and Pub Association (BBPA), expressed optimism about the potential impact of revisiting business rates increases, highlighting the importance of government responsiveness to industry concerns.
Ash Corbett-Collins, Chairman of CAMRA, emphasized the necessity of additional support to prevent pub closures and ensure their sustainability. The move is specific to the pub sector, prompting calls from UKHospitality chief Kate Nicholls for a broader solution encompassing all hospitality businesses.
Carolyn Harris MP, Chair of the APPG for UK Spirits, stressed the importance of supporting the spirits sector within pubs to enable overall sector resilience. Cabinet Minister Pat McFadden recognized the economic and cultural significance of pubs in the UK, underscoring the government’s commitment to assisting and preserving these establishments.
The Mirror’s ongoing campaign, “Your Pub Needs You,” advocates for the preservation of British pubs, reflecting the public’s support for these community hubs.