The Government is expected to announce changes within days to ease the sharp rise in business rates facing pubs in England, following mounting pressure from landlords and industry groups.
Ministers are likely to confirm adjustments to how pubs’ business rates are calculated, which would result in smaller increases to bills. Treasury officials have acknowledged the financial strain many pubs are under, particularly after significant rises in the rateable values assigned to their premises.
The move comes after an intensifying campaign by the pub sector. More than 1,000 pubs recently barred Labour MPs from their venues in protest, while trade bodies have warned that higher costs could force closures. Labour MPs themselves added to the pressure this week, urging the Government to reconsider its approach to supporting the industry.
In her November Budget, Chancellor Rachel Reeves reduced the business rates discount introduced during the pandemic from 75% to 40%. They confirmed it would be removed entirely from April. When combined with upward revaluations of pub properties, many landlords were left facing substantially higher bills.
Business rates are calculated by multiplying a property’s rateable value by a nationally set “multiplier”. The Government has already offered limited relief by lowering the multiplier for pubs and is now considering further reductions.
Another option under discussion is expanding the £4.3 billion transitional relief fund, designed to cushion businesses from sudden increases as pandemic-era support is withdrawn.
Alongside business rates changes, the Treasury is also considering more flexible licensing rules, including longer opening hours and expanded pavement drinking areas.
Other sectors, including live music venues, theatres, galleries, gyms and retailers, are calling for any additional support to be widened beyond pubs alone.
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