The government will soon announce support to help pubs in England with business rates rises, it has been claimed.
Multiple press reports say chancellor Rachel Reeves is posed to unveil new support for pubs that face increased business rates bills as a result of reforms announced in last November’s Budget.
Reeves said that firms in England would “enjoy the lowest rates since 1991”, but the ending of Covid-era business rates relief and a revaluation of properties will lead to the tax bills of many companies increasing from April.
UK Hospitality said hospitality properties in England will see their business rates bills rise by £32,714 over three years.
The changes have been strongly criticised by hospitality businesses and several groups with many pubs joining a campaign to ban Labour MPs from their premises.
Backbench Labour MPs have also called on Starmer to announce support.
During prime minister’s questions on Wednesday, York Central MP Rachael Maskell said: “Many independent business owners I have met fear the cumulative impact of the rateable value revision and relief reductions.
“In York, hospitality businesses will see an average business rates rise of 41%, music venues a rise of 44.4% and many independent shops increases of around 27%, meaning doors closing and trade ceasing. Businesses simply cannot do it.”
Earlier this week, prime minister Keir Starmer admitted businesses would “struggle” as a result of the reforms and he said the government was talking to the sector about extra support.
The chancellor has already announced help including reducing the multiplier used to calculate business rates and “transitional relief” to reduce the impact of the removal in April of the Covid-era business rates discount for hospitality, retail and leisure businesses.
Groups complain that isn’t enough and press reports say Reeves will announce extra support specifically for pubs as early as next week. It could include a further cut to the multiplier, increased transitional relief or continuing the existing discount.
The package will also likely include relaxation of licensing rules to allow pubs to open longer.
Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said: “News that the government is going to look again at business rates increases is potentially a huge win for pubs across the country and shows government have not only listened to our concerns but acted.
“This could save locals, jobs, and means publicans can breathe a huge sigh of relief. The BBPA has worked closely with ministers on a pub-specific solution that would ensure that bills are reduced in line with the government’s previous promises to pubs. We now keenly await to see the detail of the upcoming announcement.”
UK Hospitality chair Kate Nichols said the relief should apply to all hospitality businesses.
“We need a hospitality-wide solution, which is why the government should implement the maximum possible 20p discount to the multiplier for all hospitality properties,” she said.
Conservative shadow business and trade secretary Andrew Griffith said: “Labour were wrong to attack pubs and now have been forced into another screeching U-turn.”
Liberal Democrat Treasury spokesperson Daisy Cooper said: “This is literally the last chance saloon for our treasured pubs and high streets – so the government must U-turn, today.
“These businesses are worried sick, making decisions now, and can’t wait a minute longer.”
If new support is announced it will be the latest of several u-turns since Labour came to power. There has also been climbdowns on policies on the two-child benefit cap, welfare reform and winter subsidies.
Last month, after strong protests from farmers and business groups, the government increased the threshold for Agricultural Property Relief and Business Property Relief from the planned £1 million to £2.5 million.