Ministers to U-turn on pub business rates rise within days
Ministers are to U-turn on increasing business rates for pubs in the face of mounting pressure from landlords and backbench MPs, the Press Association understands.
Pubs have been facing the prospect of much higher business rates after the Chancellor announced plans to end Covid-era discounts in her budget in November. The Government had put in place a £4.3 billion fund to help pubs with the transition to higher rates, but PA understands more assistance will now be made available after an outcry from the industry. Sources said Rachel Reeves would announce a package of support in the coming days, likely to include business rates relief and measures to cut licensing red tape. Ms Reeves is understood to have commissioned work on providing more support for pubs before Christmas, after the budget’s impact on individual sectors began to become clear in Government analysis. Treasury minister Dan Tomlinson has been leading the work over the last few weeks, which has involved close discussion with the pubs sector. On Thursday, Cabinet minister Pat McFadden said his colleagues had been “talking to the pub industry” about its worries and appreciated “how important the pub industry is economically and culturally to the UK”. While he would not confirm that a U-turn was on the way, he added: “We really value the role of the pub in British life. We want to help pubs.” Responding to reports that the Government was preparing a climbdown, Liberal Democrat Treasury spokeswoman Daisy Cooper called for ministers to take action “today”. She said: “These businesses are worried sick, making decisions now, and can’t wait a minute longer. “Ministers must give them the clarity they so desperately need so businesses don’t go to the wall, hollowing our communities, in the coming days.” Conservative leader Kemi Badenoch said the move was the Government’s “first U-turn of 2026”. She wrote on social media: “Yesterday Keir Starmer told us Labour had ‘turned a corner.’ “Well, it looks like they’ve turned the corner straight into their first U-turn of 2026. “Labour are killing Britain’s pubs. This rumoured u-turn is too little too late. It’s time to back our local pubs.” Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said the change in direction was “potentially a huge win for pubs across the country and shows Government have not only listened to our concerns but acted”. She added: “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.” Labour MPs have been raising concerns about struggling pubs and urging ministers to change course in recent days. York Central MP Rachael Maskell confronted the Prime Minister about the issue, and about rising business rates more generally, warning small enterprises in her area would have to close down as a spike in business rates looms. “It will mean doors closing and trade ceasing, they just can’t do it,” she told Prime Minister Sir Keir Starmer.
Published: by Radio NewsHub