The government is expected to announce in the coming days a watering down of forthcoming increases to business rates bills faced by pubs in England. Treasury officials indicated the changes will address how pubs' business rates are calculated, leading to smaller increases in bills after recognizing the financial difficulties facing many pubs due to sharp rises in the rateable value of their premises.
The move follows pressure from landlords and industry groups, including a protest where more than 1,000 pubs banned Labour MPs from their premises. The BBC understands the revised rates will apply solely to pubs, excluding the broader hospitality sector.
Chancellor Rachel Reeves scaled back business rate discounts in her November Budget, reducing the pandemic-era 75% discount to 40% and eliminating it entirely from April. This, coupled with significant upward adjustments to the rateable values of pub premises, left landlords facing substantial cost increases.
In addition to the business rate adjustments, the Treasury is reportedly considering relaxing licensing rules to permit extended opening hours and expanded pavement areas for drinking. The potential impact on the pub sector, estimated to contribute billions annually to the UK economy, remains to be seen. Industry analysts suggest that the changes could provide a much-needed boost to the sector, which has been struggling with rising costs and changing consumer habits. The government has not yet released specific figures on the projected financial impact of the revised rates.
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