The Government is set to announce upcoming increases to the business rates bill faced by pubs In England.
The Government is expected to say in the coming days that it will change the way it calculates business rates for pubs, resulting in a smaller increase in bills.
Treasury officials say they have recognized the financial difficulties facing many pubs following a sharp rise in premises pricing.
The move follows pressure from landlords and industry groups, including more than 1,000 pubs which have banned Labor MPs from their premises.
It is believed the Treasury is also prepared to relax licensing rules to allow longer opening hours and more footpath areas for drinking.
In her November Budget, Chancellor Rachel Reeves cut the business rates discount in place since the pandemic from 75% to 40% – and announced there would be no discount from April.
That, big upward joint Adjustments to the rateable values of pub premises left landlords facing the prospect of much higher rates bills.
The campaign to reduce the impact of these rises has been gaining momentum in recent weeks, with pub owners and industry groups lobbying for more support.
Labor MPs on Wednesday called on the government to reconsider its support for the industry.
Conservative leader Kemi Badenoch, writing in The Telegraph, said she would scrap business rates altogether for thousands of pubs, accusing the government of treating them “like cash cows to be milked”.
The rateable value of a pub’s premises is multiplied by a multiplier to calculate its business rates bill.
The government has already offered some relief by reducing the multiplier for pubs, and it may be about to reduce it even further.
Alternatively they could boost a £4.3 billion “transitional relief” fund brought in to cushion the impact of withdrawal of support after the pandemic.
Industry groups welcomed the news that additional relief would be provided.
Emma McCarkin, chief executive of the British Beer & Pub Association, said it was “potentially a huge win” for the sector.
“This can save local people, jobs and the public can heave a sigh of relief,” he said.
Kate Nicholls, chair of UK Hospitality, which represents the industry, said relief should apply to all hospitality businesses affected, including cafes and restaurants, not just pubs.
“We need a hospitality-wide solution, which is why the government should implement the maximum possible 20p discount in the multiplier for all hospitality properties,” he said.
The cancellation of the recent Budget will be seen by many as another U-turn following cuts to the winter fuel payment, disability benefits and inheritance tax on farms and family businesses.
Shadow Business and Trade Secretary Andrew Griffiths said the changes showed Rachel Reeves’ budget is “falling apart”.
“Workers were wrong to strike the pub and now they have been forced to make another terrifying U-turn,” he said.
The calculation of business rates is an issue that spans all four countries of the UK.
The rates discount during the pandemic only applies to hospitality businesses in England.
Scottish businesses are awaiting the Budget there next week to see how the Edinburgh government will approach the issue.
Pubs there will be hoping the Scottish Government will follow the UK Government in offering some relief.
