Chancellor's U-Turn on Pub Rates as £80m Relief Package Eases Concerns
A last-minute climbdown by Chancellor Rachel Reeves has brought welcome news for pubs and live music venues across England, with a significant business rates relief package worth over £80 million per year to help mitigate the impact of changes announced in November.
The Treasury's revised plan aims to soften the blow from increased property tax bills caused by revaluations of properties since the pandemic, with pubs set to save an average of £1,650 each on their new business rates bill starting next April. However, this relief will not be enough to convince some publicans who had barred Labour MPs, including Reeves, from serving a pint.
Industry leaders welcomed the move but emphasized that further action was needed to address long-term concerns about rates and regulation. The British Beer and Pub Association's chief executive, Emma McClarkin, said the package provided certainty for tens of thousands of pubs and expressed support for a more comprehensive plan to reform business rates and reduce regulation.
Critics, however, argue that this is only short-term relief for an industry facing significant financial pressure due to rising wages, energy costs, inflation, and VAT. The hospitality sector has seen a 76% increase in average business rate bills over the next three years, with hotels facing an even steeper rise of 115%.
As one group of landlords who banned Labour MPs from drinking in their pubs put it, "Rates reform was only one part of our demands, and it was for the whole sector – not just pubs." Industry leaders are calling for a more sustained effort to support businesses struggling under the weight of these increases.
In contrast, high street retailers have welcomed the government's approach, with Waterstones boss James Daunt arguing that changes to business rates were "sensible" and had benefited shops in struggling areas.
A last-minute climbdown by Chancellor Rachel Reeves has brought welcome news for pubs and live music venues across England, with a significant business rates relief package worth over £80 million per year to help mitigate the impact of changes announced in November.
The Treasury's revised plan aims to soften the blow from increased property tax bills caused by revaluations of properties since the pandemic, with pubs set to save an average of £1,650 each on their new business rates bill starting next April. However, this relief will not be enough to convince some publicans who had barred Labour MPs, including Reeves, from serving a pint.
Industry leaders welcomed the move but emphasized that further action was needed to address long-term concerns about rates and regulation. The British Beer and Pub Association's chief executive, Emma McClarkin, said the package provided certainty for tens of thousands of pubs and expressed support for a more comprehensive plan to reform business rates and reduce regulation.
Critics, however, argue that this is only short-term relief for an industry facing significant financial pressure due to rising wages, energy costs, inflation, and VAT. The hospitality sector has seen a 76% increase in average business rate bills over the next three years, with hotels facing an even steeper rise of 115%.
As one group of landlords who banned Labour MPs from drinking in their pubs put it, "Rates reform was only one part of our demands, and it was for the whole sector – not just pubs." Industry leaders are calling for a more sustained effort to support businesses struggling under the weight of these increases.
In contrast, high street retailers have welcomed the government's approach, with Waterstones boss James Daunt arguing that changes to business rates were "sensible" and had benefited shops in struggling areas.
they must be so stressed out 
£80m is a good start i guess, but 76% increase in average business rate bills over the next three years? that's still super high 
i don't get why some landlords are saying it's not enough tho, like, isn't this just what they wanted all along? 
and i totally agree with Emma McClarkin from the British Beer and Pub Association, we do need a more comprehensive plan to reform business rates and reduce regulation 
but at least this is some good news for pubs in the short term 
, I don't think I could've handled all those Labour MPs trying to drown me with pints 
. But seriously, £80m is still not enough for the hospitality industry, which is basically a ticking time bomb waiting to go off 
. I mean, 76% increase in business rate bills over three years? That's like asking a friend if they want to lend you money and then taking it away 
. We need some real solutions here, not just short-term fixes 
.
. £80m relief package is a good chunk of change, and £1,650 per pub is still better than nothing 
. Emma McClarkin's right that we need more comprehensive plan to reform rates and regulation 
. And I'm curious to see what happens with those landlords who banned Labour MPs from drinking 
.
. We'll see how these pubs do next year when the business rate bills start piling up again 
.