Rachel Reeves, Chancellor of the Exchequer, expresses concern over pub business rates, indicating resistance to additional support for the hospitality sector. She announces a plan to mitigate the impact of rate hikes on pubs in the near future.
Reeves acknowledges the pandemic's severe impact on pubs, which face a significant increase in business rates. She highlights the government's £4.3 billion fund to assist businesses as temporary relief measures are phased out. However, she emphasizes the focus on pubs, as they are the most affected.
The government's decision to soften pub business rates is part of a series of U-turns, including changes to inheritance tax for farms and the reversal of mandatory digital ID plans. Business rates are set to rise sharply over the next three years as the pandemic's support ends and property values adjust.
Reeves explains that the government is making adjustments to how business rates are calculated for pubs, aiming for smaller increases. However, the UKHospitality industry body warns that rate hikes will affect the entire sector, potentially leading to venue closures.
The British Independent Retailers Association and the National Pharmacy Association highlight similar challenges, while the gym and leisure center lobby group predicts potential rate increases of 60%. The government's response includes discussions on additional support, but the extent of assistance remains uncertain.
