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The Chancellor has not ruled out the possibility of extending additional support to hospitality businesses burdened by rising business rates, beyond the assistance already pledged to pub owners. Last week, reports indicated that the Treasury was preparing to introduce further aid specifically targeting pubs, which—as part of the hospitality sector—are set to lose their Covid-era business rates relief in April.
This relief scheme’s expiration coincides with significant increases in the rateable values assigned to their premises, leading to sharp rises in business rates. Earlier in the day, the Chancellor had suggested she might be reluctant to provide further support for the broader hospitality industry. However, she later clarified at a press conference that she was “working with the hospitality sector,” signaling ongoing engagement with businesses affected by the changes.
Treasury officials confirmed to the BBC that a support package aimed particularly at pubs will be announced “in the coming days,” though they did not dismiss the potential for additional relief measures for other parts of the hospitality sector. Pressure continues to mount from opposition MPs and industry groups advocating for wider assistance that would also encompass hotels, restaurants, and other businesses facing steep rate increases. Rachel Reeves commented, “As that transitional relief comes to an end, although we’ve put in £4.3bn over the next three years, we need to make sure that we do that in a balanced way that particularly supports our pubs and the hospitality sector.”
The £4.3 billion figure refers to the value of caps designed to moderate business rate hikes over the next three years. The adjustments aim to ease the impact of what will eventually be steep increases—pubs are projected to see their rates bills grow by 76% in that timeframe, while hotels face an even steeper 115% rise. Kate Nicholls, representing the trade organization Hospitality UK, expressed cautious optimism about the government’s willingness to assist hospitality businesses beyond just pubs. “It’s good to see recognition of wider hospitality and that she is talking about support beyond pubs,” she said.
Despite this, Reeves stressed in an interview on BBC Breakfast that her primary concern remains the effect on pubs, hinting at resistance to broader support for the rest of the hospitality industry. When asked about potential aid for smaller hospitality enterprises, Reeves noted, “I think that people can see that the biggest impact and the biggest concern right now is around pubs. Some of the smallest businesses, particularly some cafes, don’t pay any business rates at all because they’re not big enough to do so.” Many businesses have already warned they will face difficulties managing the increased rates once Covid-era relief ends and property valuations are updated in April
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