Are pubs finally going to get support they need ahead of business rates hike?
A package of support is believed to be on the way for British pubs after weeks of warnings the sector faces a massive spike in business rates.
Over the Covid pandemic, hospitality firms were given a 40% discount on the rates to help them cope with the serious knock from lockdown.
At November’s Budget, Chancellor Rachel Reeves confirmed this temporary relief was coming to an end – leaving many businesses facing a steep hike in their costs.
She also announced a lower multiplier would be used to calculate the tax, but this move was more than offset by the increase in bills.
As a result, many Labour MPs – including Reeves herself – were barred from their local pub by furious landlords.
The Treasury is now understood to be preparing a £300 million support package specifically to help keep pubs afloat and avoid mass closures.
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It’s believed this will involve £100 million being distributed to the sector each year until 2029.
Treasury minister Daniel Tomlinson is expected to set out the full details in a statement to the House of Commons this afternoon.
However, there are concerns other hospitality businesses such as hotels, restaurants and cafes will miss out on support despite also facing a potentially catastrophic increase in the tax.
The average business rate bill for hotels in England is set to increase by 115% – or £111,300 – over the next three years, according to statistics from UKHospitality.
More than 20,000 fewer people were employed by the hospitality industry in December 2025 compared to the previous September, the body said – a figure it blamed on the rising tax burden.
Speaking at the World Economic Forum meeting in Davos last week, Reeves defended focusing the rates relief on pubs.
‘I do recognise the particular challenge that pubs face at the moment, and so have been working with the sector over the last few weeks to make sure that the right support is in place,’ she said.
‘I think the situation the pubs face is different from other parts of the hospitality sector.’
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