Government to water down business rate rise for pubs

The government is set to announce a reduction in business rates bill increases facing pubs.

In the coming days, the government is expected to say it will make changes to the way pubs’ business rates are calculated, which will lead to smaller increases in bills.

Treasury officials say they recognize the financial difficulties many pubs face following sharp rises in the rateable value of their premises.

The move follows pressure from landlords and industry groups, including more than 1,000 pubs, to ban Labor MPs from their premises.

In her November Budget, Chancellor Rachel Reeves reduced the business rates discounts in place since the pandemic from 75% to 40% and announced there would be no discounts from April.

This, combined with adjustments to the taxable values ​​of pub premises, has left pubs facing much higher bill rates.

The government has already offered some relief by reducing the “multiplier” used to calculate business rates. It is now expected to reduce this further to cushion the impact of higher bills.

Alternatively, they could increase the £4.3 billion “temporary relief” fund introduced to cushion the impact of withdrawals of support following the pandemic.

Canceling the last budget will be seen by many as another U-turn following cuts to winter fuel payments, disability benefits and inheritance tax on farms and family businesses.

During the pandemic, the price reduction was only valid for bars in England.

Scottish business is waiting for the Budget next week to find out how the Edinburgh government will approach the issue.

Pubs there will be hoping the Scottish government follows the UK government in providing some relief.