This Labour Government has a pubs problem as it sets about another U-turn - Jayne Dowle
It looks like Chancellor Rachel Reeves is about to perform Labour’s 12th major U-turn since coming to power, by reversing the Autumn Statement’s decision to raise business rates for pubs.
Could this volte face be entirely unconnected to the fact that only a few hours before, the government had announced details of its new road safety strategy?
Key to this are plans to tighten the drink-drive limit in England and Wales, which would basically make it impossible for pubgoers who wish to drive to drink any alcohol at all.
Sound reasons have been put forward. The drink-drive limit in England, Wales and Northern Ireland is, alongside Malta, currently the highest in Europe; 35 micrograms of alcohol per 100ml of breath.
It could be reduced to 22 micrograms in England and Wales, bringing us into line with Scotland, which cut its drink-drive limit in 2014. This means just one drink could put a motorist over the limit.
Country pubs in particular are up in arms, arguing that such a move would deal a fatal blow to business, when the industry is already reeling from the threat of rises in business rates to come in April, on top of increased energy and supply costs, higher National Insurance contributions and increases in the minimum wage.
So, under pressure from both the hospitality industry and restive backbench Labour MPs, it’s reported that the Chancellor is poised to announce a bail-out worth around £300m for pubs – many of which say they face bankruptcy if the proposed business rates increase comes to pass.
Under the new rules, business rates for pubs would be set to rise by 76 per cent over three years.
Sources in the pub industry warn that many publicans are looking down the barrel of the January 31 self-assessment tax deadline, warning that if this increase happens, there is no way they will be able to survive and stay open.
The Treasury, it’s reported, is urgently examining mitigation measures, including changing the methodology used to calculate pub business rates, raising the business rate discount available to all small hospitality, leisure and retail businesses, or changing what’s known as the ‘multiplier’, the figure by which a business’s rateable value is multiplied to achieve a guide for business rates.
Whatever the outcome of these machinations, one thing is clear. This Labour government has a massive problem with pubs. You only have to look at those cringeworthy photo opps featuring Reeves or PM Sir Keir Starmer posing awkwardly with a pint at the bar to see this.
Starmer might have made much of his allegiance to his local in Kentish Town, north London, during the General Election campaign, but it was all very ‘man of the people’ performative.
They also have a problem with small businesses. I heard one Conservative commentator on the radio the other day pointing out that not a single member of the Cabinet had any experience of running their own business. I don’t know how true that is, but it’s clear that the spirit of enterprise is in short supply around the Downing Street table.
No-one, only a selfish drunkard, would argue that any steps to reduce deaths and serious injury on the roads is unwelcome.
Labour MP Lilian Greenwood, who bears the title of Minister for the Future of Roads, says action must be taken on drink-driving because “last year 260 people were killed as a result of drink driving. That's unacceptable.”
It would be unacceptable, if it was actually correct. If the government is going to take the moral high ground, it should get its facts right. According to the Department of Transport’s official record, this total of 260 deaths “involving illegal alcohol levels” is from 2023, the latest figures available, reported in September 2025.
The Department of Transport says there were between 230 and 290 fatalities in 2023, with a central estimate of 260. Despite a seven per cent increase in such tragedies in the decade since 2013, deaths caused by drink-driving are already in decline, dropping by 14 per cent from the previous year, 2022.
“Of course we want our roads to be as safe as possible, but ministers must consider the impact of this change on top of big tax hikes already announced for pubs,” says Tom Stainer, chief executive of CAMRA (Campaign for Real Ale).
“We also want authorities that provide public transport, like combined authorities, to have a duty in law to run evening and late-night services so people can get to and from the pub, including in rural areas.”
The chances of that happening are about as miniscule as Rachel Reeves getting a job as a barmaid, and not only because her grasp of arithmetic is shaky at best.