The break is expected to see the British government reverse its recent increases to business rates bills that pubs in England pay. Landlords and owners of public houses have been vocal in their opposition to the new taxation schemes. They are concerned about the financial impacts these changes will bring.
In November, Chancellor of the Exchequer Jeremy Hunt announced that would change dramatically. His announcement to cut the business rate relief for pubs from 75% to 40% was unexpected, and he plans on scrapping the discount completely by April. This extreme shift has created panic among the hospitality industry, concerned for the effect this could have on their businesses.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), commented on the government’s approach, stating, “This latest announcement looks like another sticking plaster on a broken system rather than the more fundamental reform required.”
At the same time, other industry stakeholders are echoing these concerns and demanding an extension of this support further—beyond pubs. Huw Edwards, Chief Executive of ukactive, emphasized the need for a business rates support package that includes gyms and leisure centres. He warned that without such support, “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.”
Dame Caroline Dinenage, a Conservative MP, highlighted the struggles faced by various venues, stating, “Venues, clubs and cinemas up and down the country are already struggling for survival.” Her comments highlight the acute labor shortages facing the broader entertainment and hospitality industries.
In recent weeks the Independent Valuation Office has issued substantial property assessments for Pubs and hospitality venues. This new development makes what is already a complicated financial picture even worse for businesses. As expected, this ruling has led to glowing praise and furious condemnation. Over 1,000 pubs have allegedly banned Labour parliamentarians from setting foot in them in protest.
Andrew Goodacre, Chief Executive of the Federation of Small Businesses, underscored this very point. He further flagged that all sectors are going through a crisis like what pubs have been going through. He remarked, “Perhaps independent retailers need to follow the pubs’ example and start banning MPs from their premises too,” while highlighting that they “face exactly the same challenges as pubs but have been left out of discussions about additional support.”
Jon Collins, Chief Executive of music venue body LIVE added his perspective on the troubling situation. 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 illustrate a new and notable consensus among communities, industries, and advocates that everyone needs to be included in the federal government’s upcoming smart and fair decisions.
Labor’s Shadow Chancellor of the Exchequer Rachel Reeves welcomed the government’s previous reforms to business rates. These changes were supposed to help hospitality and pubs survive. “I want to support our pubs. I want to support our high streets,” she said. That’s why we were able to make the change from percentage-based rates to fixed-dollar amounts. Now, to be fair, I know a lot of these local lanes are still in the trenches, and we’re trying to make them work. She showed that discussions with different sectors are still underway to find out possible policy implications.
Debate over the business rates system and calls for reform have lasted for years. Stakeholders across industries are looking for a more holistic and integrated approach that seeks to meet the needs of all impacted industries.