In a bid to keep enraged pub landlords happy after announcing an increase of business rates pubs could see more freedom to be ‘open for longer’ and could also receive more support from the government
Pubs across England could be allowed to stay open for longer after the Prime Minister faces a backlash for rising business rates.
Prime Minister Keir Starmer has said the government is “talking to the sector, particularly hospitality and pubs” about the “further support”. The Prime Minister said: “We’re talking to the sector, particularly hospitality and pubs, about what further support we can put in, whether that’s licensing freedoms or other measures. We want to talk to the sector.
“I want to keep working with them to make sure we can work this through.” Starmer added the government is “very open” to the discussion of pubs having more freedom to be “open for longer”. Many pubs across the country are to pay higher business rates come April – a tax charged on commercial properties – which is recalculated every three years.
Shadow Chancellor Sir Mel Stride has fired back against the hike in business rates railing against the tax increase claiming it will “crush the high street.”
The Shadow Chancellor said: “Over the next three years business rates will go up by 76 per cent for the average pub. Any business would struggle to cope with that. We have set out a clear plan for controlling spending, especially the benefits bill, meaning a future Conservative government will scrap business rates for thousands of pubs, restaurants and shops on our high streets.”
The trade body UK Hospitality has cautioned business rates for an average pub would increase by 76 per cent after the business rates hike. More than 1,000 pubs have joined a campaign to bar Labour MPs from visiting their pubs in protest at the government’s actions. The campaign was launched by pub landlord Andy Lennox of Dorset’s Old Thatch pub.
Andy Lennox has blasted the government for the tax increase and said: “They’re taxing hospitality into extinction, and dressing it up as cutting rates and helping us.”
James Fowler, who runs the Larder House in Bournemouth, has joined the campaign and banned his local MP, Tom Hayes. He said: “I told Tom it wasn’t personal. He’s a great local MP – I voted for him – but this isn’t a local issue. We set this up so it could go national. We want people talking across the whole country – and I don’t mind putting my neck on the line.”
The Prime Minister has defended the position to raise business rates on pubs and said: “Obviously, what’s happened is there were reductions in place during COVID which were always going to be unwound. At some point, the overall rates are going to be lower. But I accept that because of revaluation, that means that some will have their bills going up. We’re putting in place transitional relief.”