The UK government is reportedly preparing to announce a reversal on the significant increases to business rates that pubs in England are set to face. All the while landlords and pub owners are putting more and more pressure. They have publicly denounced the increases, leading to this possible backtrack. The likelihood of that has changed entirely. Now more than 1,000 pubs have pledged to ban Labour MPs from stepping foot inside, a move that illustrates the intensity of anger felt across the industry.
Here’s what Conservative MP Caroline Dinenage has done. She wrote to the Chancellor about the ongoing plight of venues, clubs and cinemas battling to stay alive in this increasingly hostile economic environment. Her comments highlight a national crisis impacting not just pubs but all entertainment and cultural venues in the UK.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), expressed concern about the implications of the government’s current approach. She stated, “This latest announcement looks like another sticking plaster on a broken system rather than the more fundamental reform required.” Dickinson’s comments tap into a growing apprehension. Despite some temporary relief measures to reduce taxes on pubs and hospitality, many feel we need more permanent, targeted reforms.
To pay for this, in the November Budget Chancellor cut business rate discounts from 75% down to 40%. Starting in April, there will no longer be any discounts for businesses. This development has exacerbated fears among pub owners and operators that they could face insurmountable financial pressures just as they aim to recover from pandemic-related losses.
Jon Collins, chief executive of the music venue body LIVE, has called for more support to go beyond pubs. He stated, “If the government is preparing a U-turn on business rates for pubs, it must not leave live events and arenas behind.” His statements call on each of us to forcefully address all facets of the entertainment sphere. These sectors, too, are struggling with many of the same issues.
Huw Edwards, chief executive of ukactive, supported this notion by pointing directly to the fitness sector’s misery. He warned, “Failure to provide a business rates support package to gyms, pools and leisure centres will lead to higher prices, reduced services, redundancies and in some cases the loss of gyms from our communities.” Edwards’s comment illustrates that the effects of lack of support reach far past the doors of pubs.
Andrew Goodacre, chief executive of the British Independent Retailers Association, an organization that represents independent retailers, expressed his displeasure. He remarked, “Perhaps independent retailers need to follow the pubs’ example and start banning MPs from their premises too.” He further pointed out that independent retailers “face exactly the same challenges as pubs but have been left out of discussions about additional support.”
Rachel Reeves, shadow chancellor, reacted by thanking the government for a job very well done. She stated, “I want to support our pubs; I want to support our high streets. That’s why we made the change to the rates. I recognize that many paths are still struggling and we’re working with them.” Reeves’s remarks imply a continued engagement with the sector as they look to determine the downstream impact of policies on small businesses.
The Independent Valuation Office’s recent assessment indicating an increase in property values for pubs and hospitality venues has sparked further outrage among industry stakeholders. Many think that such a valuation doesn’t begin to capture the financial realities these establishments now face.
Discussions are already generating considerable buzz as excitement grows for the government’s long-awaited announcement. Pub owners and other stakeholders are optimistic, though, that the forthcoming solution will directly answer their concerns and help some of the other impacted sectors that are hurting. Venues, clubs, cinemas and independent retailers are all scrapping to stay alive. The need for holistic support has never been more urgent.