Rachel Reeves to U-turn on business rates after pressure from pubs
Rachel Reeves is to U-turn on increasing business rates for pubs in the face of mounting pressure from landlords and backbench MPs, The Yorkshire Post understands.
Pubs have been facing the prospect of much higher business rates after the Chancellor announced plans to end Covid-era discounts in her budget in November.
In York, hospitality businesses are facing a 41 per cent increase in their rates, according to the city’s business improvement district (Bid), while some of the region’s most famous pubs were expected to see their tax double.
York Central MP Rachael Maskell confronted Sir Keir Starmer about this at Prime Minister’s Questions on Wednesday.
Ms Reeves herself has been banned from several pubs in her Leeds West and Pudsey constituency, such is the outcry from landlords.
The Chancellor had been inundated with protests from backbench Labour MPs from both wings of the party.
The Treasury had put in place a £4.3bn fund to help pubs with the transition to higher rates, but it is understood more assistance will now be made available.
Sources said Ms Reeves would announce a package of support in the coming days, likely to include business rates relief and measures to cut licensing red tape.
Ms Reeves is understood to have commissioned work on providing more support for pubs before Christmas, after the budget’s impact on individual sectors began to become clear in Government analysis.
Treasury minister Dan Tomlinson has been leading the work over the last few weeks, which has involved close discussion with the pubs sector.
Yesterday, Cabinet minister Pat McFadden said his colleagues had been “talking to the pub industry” about its worries and appreciated “how important the pub industry is economically and culturally to the UK”.
While he would not confirm that a U-turn was on the way, he added: “We really value the role of the pub in British life. We want to help pubs.”
Ash Corbett-Collins, CAMRA (Campaign for Real Ale) chairman, said: “Doing nothing and letting pubs go to the wall was never going to tolerated by pub goers, publicans or MPs.
“The Government must urgently end the uncertainly and announce the extra help and permanently lower bills our locals were promised and need to survive and thrive.”
Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said the change in direction was “potentially a huge win for pubs across the country and shows Government have not only listened to our concerns but acted”.
She added: “This could save locals, jobs, and means publicans can breathe a huge sigh of relief.
“The BBPA has worked closely with ministers on a pub-specific solution that would ensure that bills are reduced in line with the Government’s previous promises to pubs.
“We now keenly await to see the detail of the upcoming announcement.”