Pubs are set to receive relief from the Government as plans are underway to reduce upcoming increases to business rates. The Treasury is on the verge of announcing measures to assist struggling pubs, with enhanced support expected to be revealed soon. The relief package is likely to involve adjustments to business rates and simplification of licensing regulations.
This development follows Chancellor Rachel Reeves instructing officials to explore ways to aid the hospitality sector before the holiday season in response to significant resistance from businesses. Concerns have been raised within the industry about the potential for widespread closures due to escalating costs, with some Labour MPs even being denied entry to their local pubs by frustrated landlords.
The adjustments to business rates scheduled for April were meant to coincide with the phasing out of a Covid-related discount, leading to a substantial increase in bills for pubs. Ms. Reeves reduced the relief provided since the pandemic from 75% to 40% during the Budget, with the assistance set to end completely in April.
The changes were set to align with revisions to business rates for all non-residential properties, which would be based on the property’s rental value in 2024 and potential revenue. Ms. Reeves stated that these modifications would result in permanently lower rates for over 750,000 retail, hospitality, and leisure properties, accompanied by a £4.3 billion support package over three years. However, the sector raised alarms as some pubs faced bill increases doubling or tripling their annual expenses.
This recent reversal by the Government comes after yielding to protests from farmers over inheritance tax hikes ahead of Christmas, following concessions on cuts 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 the Government reassessing business rates increases on pubs, emphasizing the importance of preserving local establishments and jobs.
Ash Corbett-Collins, CAMRA Chairman, stressed the urgency of providing additional help to pubs to ensure their survival and success, highlighting the necessity for the Government to fulfill its promises regarding reduced bills. However, this relief does not extend to other sectors, prompting concerns among businesses. UKHospitality chief Kate Nicholls called for broader support to encompass all hospitality businesses affected by the rate hikes.
Carolyn Harris MP, Chair of the APPG for UK Spirits, emphasized the significance of supporting the spirits sector within pubs, noting the challenges posed by rising excise duties. Cabinet Minister Pat McFadden reiterated the government’s commitment to assisting the pub industry due to its economic and cultural importance in the UK.
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