Businesses across various sectors are calling for their inclusion in any potential reversals of recent changes to business rates affecting pubs. Yet the Chancellor has cut business rate discounts for hospitality businesses down to 40%. This drastic cut poses grave risks to the long-term survival of many businesses. Beginning in April, temporary business rate reliefs for public houses is removed entirely, creating a great deal of concern from the sector’s heavy hitters.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), condemned the government’s decision. She stated, “This latest announcement looks like another sticking plaster on a broken system rather than the more fundamental reform required.” Dickinson’s remarks highlight the growing necessity to rethink the entire business rates regime. This is vital, given the challenges that many sectors have been struck by, not unlike that of pubs’ fate.
Jon Collins, Chief Executive of LIVE, agrees that inclusivity is vital in any government-led conversation. He strongly reinforced this sense of desire during recent wrap around discussions. “If the government is preparing a U-turn on business rates for pubs, it must not leave live events and arenas behind,” he insisted. Collins’ remarks represent a wider sentiment that the changes introduced to favor pubs must be applied to other entertainment industries that have been hit hard.
Over 1,000 English pubs have joined forces to Fly the Flag and put a stop to Labour MPs. They’ve barred these politicians from setting foot on their grounds. This extraordinary step underscores the growing pressure from these industries and their political allies on Democratic leadership. Moreover, businesses are eager to get out and express their displeasure with continued bad policies.
Huw Edwards, Chief Executive of ukactive, referred to the prospect as ‘catastrophic’. He warned that if gyms, pools and leisure centres were left out of any assistance it would be fatal. He stated, “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’ words express urgent concerns about the collateral damage of that financial stress on essential community resources.
This was echoed by Dame Caroline Dinenage, Conservative MP and former venues operator, who was sympathetic to the plight of venues nationwide. She noted, “Venues, clubs and cinemas up and down the country are already struggling for survival.” Dinenage’s remarks illustrate the expanding case for government intervention to support all corners of the entertainment industry facing severe economic distress.
Andrew Goodacre, the Chief Executive of an organization representing independent retailers, explained that these businesses experience the same pressures as pubs. He stressed that both sectors are suffering under similar constraints. He remarked, “Perhaps independent retailers need to follow the pubs’ example and start banning MPs from their premises too.” Goodacre called for a unified approach to advocacy, stating that independent retailers “face exactly the same challenges as pubs but have been left out of discussions about additional support.”
The Independent Valuation Office’s recent increase in property values for pubs and hospitality venues has exacerbated frustrations among stakeholders who believe their concerns are being overlooked. The government is set to announce a major business rates bill increase reversal for pubs across England. While her comments Rachel Reeves, Shadow Chancellor, were welcome recognition that businesses need support, they largely protected the UK government’s previous record in office. 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.”
While conversations persist about any possible changes to policy, many of the industry’s leaders are on watch. While highlighting the positive steps, they stress the need for systemic changes. This will reach all sectors struggling with the same issues and provide equitable relief to all communities impacted by ever-increasing expenses.