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 follows pressure from landlords and industry groups, including a protest where more than 1,000 pubs banned Labour MPs.

The Treasury is also reportedly considering relaxing licensing rules to permit extended operating hours and expanded pavement drinking areas. It remains unclear whether the changes will be limited 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 elimination of any discount starting in April. This reduction prompted concerns from the pub industry, which argued that the increased rates would negatively impact their profitability and viability.

Industry groups have warned that the initial rate increases could lead to pub closures and job losses, particularly in rural areas. The British Beer and Pub Association (BBPA) has been vocal in its criticism of the original plan, stating that it would place an unsustainable burden on the sector. The BBPA estimates that the average pub faces an increase of several thousand pounds in annual business rates under the initial plan.

The government's decision to reconsider the rate increases reflects a recognition of the economic importance of the pub sector and the potential consequences of imposing excessive financial burdens. The changes are expected to provide some relief to pubs, allowing them to better manage their costs and continue contributing to the economy. The exact details of the revised calculation method and the extent of the financial relief remain to be seen. Further announcements are expected in the coming days.