The government is expected to announce changes in the coming days to the calculation of business rates for pubs in England, resulting in smaller increases to their bills. Treasury officials stated they recognized the financial strain on pubs following significant rises in the rateable value of their properties. The move comes after pressure from landlords and industry groups, including a protest where over 1,000 pubs banned Labour MPs from their establishments.

The Treasury is also reportedly considering relaxing licensing rules, potentially allowing for extended opening hours and expanded pavement areas for outdoor drinking. It remains unclear whether these changes will be exclusive to pubs or extended to other hospitality businesses like cafes and restaurants, as requested by trade groups.

In the November Budget, Chancellor Rachel Reeves reduced business rate discounts, which had been in effect since the pandemic, from 75% to 40%, and announced the complete removal of the discount starting in April. This decision prompted concerns from the pub industry, which argued that the increased rates would further strain their already tight margins.

The exact financial impact of the revised business rate calculations remains to be seen, but analysts suggest that the move could provide a much-needed boost to the pub sector, which has been struggling with rising costs and changing consumer habits. Industry experts believe the relaxation of licensing rules could also help pubs increase revenue and attract more customers. The government has yet to release specific details on the new calculations or the revised licensing regulations. Further announcements are expected in the next few days.