UK govt to backtrack on on-trade business rates reform
It is believed that chancellor Rachel Reeves is set to announce a U-turn on the suspension of business rates relief for pubs in the UK.
In the autumn Budget, Reeves claimed that business rates reform would mean lower rates for more than 750,000 retail, hospitality and leisure properties.
However, UKHospitality later estimated the new system would increase the average pub’s rates by 76% by 2028. The Night-Time Industries Association (NTIA) also calculated that small bars with a rateable value of £25,000 (US$33,063) would see an increase of more than £2,000 per year, with larger differences for bigger venues.
It is unclear what relief Reeves is planning; however, ministers have allegedly told The Independent there will be “a U-turn on pubs”, with similar reporting from the BBC and The Guardian.
Following the leak, Kate Nicholls, chair of UKHospitality, said: “The entire hospitality sector is affected by these business rates hikes – from pubs and hotels to restaurants and cafes.
“We need a hospitality-wide solution, which is why the government should implement the maximum possible 20p discount to the multiplier for all hospitality properties.”
While pubs may benefit from extended relief, it is not known if any support will be provided to bars or nightclubs.
Michael Kill, CEO of the NTIA, said: “The suggestion that this is ‘just pubs’ is misleading and frustrating. Pubs are important, but they are only one part of the nightlife ecosystem. Casinos, nightclubs, theatres, bars, and live music venues all rely on each other to thrive.
“These business rates increases – averaging 76%, with some doubling or more – put the entire sector at risk. If these venues fail, we lose jobs, culture, and vital infrastructure that make the UK a world-leading destination for nightlife.”
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