Pubs to get support package after business rates backlash

Pubs and music venues in England are set to receive a much-needed lifeline, as the government has announced a 15% discount on their business rates bills starting in April. This discount will be accompanied by a freeze on rate increases for the next two years, providing some relief to struggling businesses in the hospitality sector.

According to Treasury Minister Dan Tomlinson, this three-year support package is estimated to be worth £1,650 for the average pub in the 2026/27 financial year. The move comes in response to the backlash following the November Budget, which left many businesses facing significant rate hikes. In fact, more than a thousand pubs went as far as banning Labour MPs from their premises in protest.

While the focus has been on pubs, industry experts like UK Hospitality have called for a wider support package that includes hotels, restaurants, and other businesses in the sector. The government has earmarked £80 million for the first year of the relief package, with subsequent years’ values to be determined by the Office for Budget Responsibility (OBR).

Tomlinson emphasized the importance of pubs as community hubs and expressed the government’s commitment to further support the sector. He noted that the number of pubs has declined by nearly 7,000 since 2010, highlighting the need for ongoing assistance.

In addition to the rate discount, the government has pledged to review how pubs are valued by the Valuation Office Agency (VOA) ahead of the next revaluation in 2029. However, the announcement has received mixed reactions from opposition politicians and industry stakeholders.

Shadow Chancellor Mel Stride dismissed the measures as a mere “sticking plaster,” criticizing the government for not providing more substantial support. Liberal Democrat Treasury spokesperson Daisy Cooper echoed these sentiments, calling for increased business rates discounts for all retail, hospitality, and leisure businesses, as well as an emergency VAT cut for the hospitality sector.

One pub owner, Chris Tulloch, managing director of Blind Tiger Inns, expressed skepticism about the government’s relief measures, describing them as inadequate. Despite the discount, Tulloch highlighted the escalating costs faced by businesses, including rising labor expenses and business rates. He called for a complete overhaul of the business rates system to address the challenges faced by the hospitality industry.

Industry bodies like UK Hospitality and the British Beer and Pub Association (BBPA) welcomed the government’s intervention but stressed the need for long-term reforms to business rates. With many businesses still facing financial challenges, the focus is now on sustaining the sector’s recovery and ensuring the viability of pubs and other licensed venues in the future.