The Government is facing mounting pressure to broaden a planned package of business rate relief beyond the pub sector, following reports of an impending Treasury U-turn.
Hospitality sector demands wider solution
Trade bodies have warned that "piecemeal responses" will not "save our high streets", urging ministers to expand support to all struggling businesses. The calls come as the Treasury, led by Chancellor Rachel Reeves, is understood to be finalising a support package specifically for pubs, expected to be announced within days.
This move represents a significant shift after the November budget outlined major hikes in business rates, driven by property revaluations and the withdrawal of Covid-era discounts. While a £4.3 billion transition fund was initially established, additional relief for pubs is now on the table.
Steep increases across the board
Kate Nicholls, chairwoman of UKHospitality, argued for a "hospitality-wide solution", emphasising that the entire industry is affected. Data from her organisation reveals the scale of the challenge: hotels in England face an average business rate increase of 115% by 2030, compared to a 76% rise for pubs.
The pain extends far beyond hospitality. The National Pharmacy Association highlighted that pharmacies are confronting a staggering 140% increase. Its chief executive, Henry Gregg, called for pharmacies to be exempted from business rates entirely, mirroring the treatment of GP practices.
Calls for fundamental reform, not sticking plasters
Ros Morgan, chief executive of the Heart of London Business Alliance, welcomed the expected U-turn as recognition that the autumn budget was "untenable". However, she stressed that a "temporary sticking plaster solution aimed at just one sector" is insufficient. She joined others in demanding fundamental reform of the business rates system.
"In addition to pubs, hotels, theatres, galleries and visitor attractions, as well as offices and gyms and many other types of business, are all facing steep increases in bills," Morgan stated.
While the pub industry tentatively welcomed the news, with British Beer and Pub Association chief Emma McClarkin saying publicans "can breathe a huge sigh of relief", political reactions were mixed. The Liberal Democrats demanded immediate proposals to provide clarity, while Conservative leader Kemi Badenoch criticised the expected reversal as "too little too late".
The work on the pub support package has been led by Treasury minister Dan Tomlinson over recent weeks, following analysis commissioned by the Chancellor before Christmas which revealed the budget's severe impact on specific sectors.
