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UK Government Plans to Ease Business Rate Rises for Pubs

lite News Desk 2 min read

At a glance

  • The government is preparing to reduce planned business rate increases for pubs
  • Chancellor Rachel Reeves announced a reversal on the rate rise policy
  • Pubs were facing a 76% increase in business rates over three years

The UK government has announced plans to adjust its approach to business rates for pubs in England, following responses from the hospitality sector and political figures. The move addresses concerns about the impact of rising costs on pubs and related businesses.

Chancellor Rachel Reeves stated that the government will reverse its earlier position on increasing business rates for pubs. The decision comes after feedback from industry groups and some members of parliament, who raised concerns about the effect of higher rates on the sector.

Previously, pubs were set to experience a 76% rise in business rates over a three-year period. This increase was linked to the end of pandemic-related relief measures and changes in property valuations that affect how rates are calculated.

The government is preparing a support package that is expected to include measures such as rate reductions for pubs. Additional steps to simplify licensing and administrative requirements are also anticipated as part of the package.

What the numbers show

  • Pubs faced a 76% business rates increase over three years
  • The increase was tied to the removal of pandemic-era reliefs
  • Property revaluations contributed to the projected rate rise

Industry representatives and some MPs have called for the relief measures to be expanded beyond pubs. They have suggested that similar support should be provided to other hospitality businesses, including restaurants, hotels, and music venues.

The government’s forthcoming package is expected to address both financial and regulatory aspects for pubs. Specific details on the scope and implementation of these measures have not yet been published.

Industry reaction

Industry leaders and some MPs have stated that the relief should not be limited to pubs. They have called for the government to consider extending support to a wider range of hospitality venues.

These calls reflect ongoing discussions within the sector regarding the best approach to supporting businesses affected by changes in business rates and the withdrawal of temporary reliefs.

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

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