Story Highlight
– Government to announce changes to pub business rates soon.
– Smaller business rate rises expected for pubs nationwide.
– Industry pressure led to potential relaxation of licensing rules.
– Proposed support may extend beyond pubs to all hospitality.
– Leaders call for urgent solutions amid financial concerns.
Full Story
The UK government is poised to announce adjustments aimed at alleviating the burden of business rates for pubs in England within the next few days. This intervention is expected to modify the methodology used to calculate business rates, which would lead to lower bill increases for these establishments.
Treasury officials have acknowledged the significant financial strain many pubs are undergoing due to steep increases in the rateable values of their properties. This announcement follows pressure from the pub industry, including a notable protest where over 1,000 pubs chose to ban Labour MPs from their venues.
In addition to potential modifications to business rates, there are indications that the government may ease licensing regulations, permitting extended opening hours and increased outdoor drinking areas. However, it remains uncertain whether these changes will be limited to pubs or extended to other hospitality sectors such as cafes and restaurants, which have also been calling for similar support.
During her November Budget presentation, Chancellor Rachel Reeves reduced the business rate discount from 75% to 40%, with a complete withdrawal of discounts scheduled for April. This, combined with significant increases to the rateable values of pub properties, has led landlords to anticipate considerably higher rates.
In recent weeks, a campaign advocating for further support has gained momentum, with pub owners and industry representatives lobbying the government. On Wednesday, Labour MPs urged the government to reconsider its strategy for supporting the sector.
Kemi Badenoch, leader of the Conservative Party, expressed her intent to eliminate business rates for numerous pubs, criticizing the government for treating them as “cash cows to milk,” as stated in her column for The Telegraph.
The calculation of business rates is based on the multiplier applied to the rateable value of a pub. The government has previously provided some relief by reducing this multiplier, and further reductions are anticipated. Alternatively, an enhancement of the £4.3 billion “transitional relief” fund may also be on the cards to mitigate the impact of the removal of pandemic support.
Industry representatives welcomed the possibility of additional aid. Emma McClarkin, Chief Executive of the British Beer and Pub Association, referred to it as “potentially a huge win” for the sector, contributing to the preservation of local venues, jobs, and offering much-needed relief to publicans. Meanwhile, Kate Nicholls, Chair of UK Hospitality, emphasized that any support should reach beyond pubs to encompass all hospitality businesses facing rising rates.
Critics of the current government policies suggest that any reversal may indicate another U-turn akin to previous adjustments made on winter fuel payments, disability benefits, and inheritance tax for family businesses. Shadow Business and Trade Secretary Andrew Griffith remarked that such changes expose flaws in Rachel Reeves’ Budget, stating, “Labour were wrong to attack pubs and now have been forced into another screeching U-turn.”
Liberal Democrat Treasury spokesperson Daisy Cooper warned that the time for action is critical, referring to the situation as “literally the last chance saloon for our treasured pubs and high streets.” She called for immediate government intervention, asserting that businesses are increasingly anxious and cannot afford delays.
It’s important to note that business rate determinations are devolved matters across the four nations of the UK. The pandemic-related discounts were uniquely applied to hospitality businesses in England, leaving Scottish pubs awaiting the forthcoming Budget from the Edinburgh government, where hopes remain that similar relief measures will be introduced.
