UK Government Plans to Reverse Business Rates Rise for Pubs

The UK government is expected to change course on business rates for pubs, following policy adjustments introduced in the November Budget that increased costs for various businesses.

Chancellor Rachel Reeves’s November Budget included measures that raised the rateable values of business properties and reduced discounts previously introduced during the Covid-19 pandemic. These changes led to higher business rates for sectors such as restaurants, cafés, hotels, and shops.

Industry representatives have responded to the expected government move by requesting that any relief for pubs be extended to other businesses in the hospitality sector. Calls for broader support have come from organisations representing hospitality venues and live events.

The National Pharmacy Association stated that pharmacies have experienced a 140% rise in business rates. The association urged that any government relief for pubs should also be made available to pharmacies facing similar cost pressures.

What the numbers show

• Business rates for pharmacies have increased by 140%, according to the National Pharmacy Association
• The November Budget raised rateable values and reduced Covid-era discounts for businesses
• Relief measures are currently expected to focus on pubs

Business rates are a recurring cost for many UK businesses, and changes to these rates can have a direct impact on operating expenses. The November Budget’s adjustments affected a range of sectors, prompting responses from both hospitality and pharmacy groups.

Industry leaders, including representatives from UKHospitality and LIVE, have said that support should not be limited to pubs. They have called for relief to be extended to the wider hospitality industry, which includes restaurants, cafés, and event venues.

Industry reaction

UKHospitality’s Kate Nicholls and LIVE’s Jon Collins have called for the government’s relief measures to include the broader hospitality sector, not just pubs. Their statements reflect a coordinated request from industry bodies for more comprehensive support.

The National Pharmacy Association said pharmacies have been affected by substantial business rate increases and requested that any relief for pubs be applied to pharmacies as well. The association highlighted the scale of rate increases experienced by its members.

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