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High Street retailers, pharmacies, and music venues have urged Rachel Reeves to halt the upcoming business rates increases that will affect not only pubs but also a wider range of establishments. The government is anticipated to announce soon a reversal of the planned business rates hikes specifically targeting pubs in England. This move comes after significant criticism from pub owners and landlords, with over 1,000 pubs having barred Labour MPs from their premises in protest against the increases. Nevertheless, various lobby groups and some backbench MPs have called for this relief to be extended to other businesses likely to struggle with the higher bills.
In the Chancellor’s Budget last November, the discounts on business rates—which had been as generous as 75% since the pandemic—were reduced to 40%, with plans for these discounts to be completely removed from April onwards. This reduction, combined with substantial upward reassessments of the rateable values for pub properties, has significantly increased the financial burden many landlords are facing. Sources within the BBC understand that the government’s proposed easing of these increases will be limited to pubs, excluding the broader hospitality sector from any relief.
The British Independent Retailers Association (Bira), which represents independent shops, cafes, and restaurants, voiced concerns over the selective support for pubs. Andrew Goodacre, Bira’s chief executive, pointed out that independent retailers face similar difficulties but have been excluded from the conversation about additional support. He commented, “Perhaps independent retailers need to follow the pubs’ example and start banning MPs from their premises too.” Meanwhile, Surinder Arora, who runs several hotels, argued that carving out pubs alone for relief is unfair. Speaking on BBC Radio 4’s Today programme, Arora revealed that one of his hotels saw an increase of £12.4 million in business rates after the discount reductions. He warned that these soaring costs would inevitably be passed on to customers and predicted “belt-tightening” measures, cautioning that higher taxes might halt expansion plans or even lead to contraction.
Further criticism came from the British Retail Consortium (BRC), whose chief executive Helen Dickinson described the current business rates system as “not fit for purpose.” She dismissed the government’s latest proposal as merely a temporary fix rather than a fundamental reform. Jon Collins, head of LIVE—the music venue trade body—urged the government not to neglect live events and arenas if it reverses the business rates increases for pubs. Meanwhile, Henry Gregg of the National Pharmacy Association highlighted potential rate rises of up to 140% in the pharmacy sector. Similarly, gyms, pools, and leisure centers face potential increases around 60%. Ukactive chief executive Huw Edwards warned that without support, higher expenses could lead to price hikes, reduced services, job losses, and even the closure of such facilities. Reflecting these broad concerns, Conservative MP Dame Caroline Dinenage wrote to the Chancellor calling attention to the struggles faced by venues, clubs, and cinemas nationwide, stressing that the planned reforms risk pushing many over the brink. She urged the Treasury to clarify the rationale behind these changes and to provide concrete details on alternative support promised by the Prime Minister.
Rachel Reeves acknowledged the tension between the government’s actions and the business realities on the ground. She explained that although the tax rate on pubs and hospitality had been lowered, the Independent Valuation Office had increased the assessed value of these properties. In an interview on Good Morning Britain, she said, “Now we’re working with the sector to look at the implications of a range of policies and looking at planning and licensing.” Reeves emphasized her commitment to supporting pubs and High Streets, acknowledging the ongoing struggles and stating that efforts are underway to assist these sectors
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