Pubs and Hospitality Sector Await Possible New Government Support

Rising business rates and ongoing financial pressures have led to renewed attention on the support available for pubs and the wider hospitality sector in the UK.

Senior government officials have stated that additional measures to assist both pubs and the broader hospitality industry are under active review. The Leader of the House of Commons has also said that more support is being considered for businesses facing financial strain in this sector.

The government has already implemented a £4.3 billion transitional relief fund intended to help pubs adjust following the conclusion of Covid-era business rates relief. This fund aims to provide financial assistance as these businesses transition to new rates structures.

For the 2025-26 period, the Retail, Hospitality and Leisure Business Rates Relief scheme offers a 40% reduction in business rates for eligible occupied properties, with a maximum benefit of £110,000 per business. This scheme is designed to ease the burden on qualifying businesses within these sectors.

What the numbers show

• The 2025-26 relief scheme provides 40% rates relief up to £110,000 per business
• Typical pub rateable value is projected to rise by about 30%, from £30,945 to £40,245
• Some pubs may see business rates increase by up to 76%, and hotels up to 115%, phased over three years

Analysis indicates that under the new system for 2026-27, a typical pub could see its annual business rates liability increase by approximately £6,109, representing a rise of about 66%. These changes are expected to impact a wide range of businesses across the hospitality industry.

Industry sources have reported that some pubs may experience business rates increases as high as 76%, while hotels could face increases of up to 115%. These increases are scheduled to be phased in over a three-year period starting in April.

In response to these rising costs and concerns about government support, more than 1,000 pubs have banned Labour MPs as a form of protest. This action reflects discontent among some business owners regarding the perceived level of assistance provided in recent budget measures.

Industry reaction

The British Beer and Pub Association has stated that the situation is urgent and has indicated that further meetings with government officials are planned. The association continues to engage with policymakers to discuss ongoing challenges faced by the sector.

* This article is based on publicly available information at the time of writing.