Pubs are under threat but chancellor Rachel Reeves has been accused of pulling the rug from under them by Celebrity chef and pub owner Tom Kerridge
Rachel Reeves has been slammed for blocking a cash lifeline for boozers. It comes after Sir Keir Starmer admitted many pubs “will struggle” with new business rate changes.
The Treasury is insisting it will not change the tax policy despite the PM appearing to open the door to “what further support we can put in whether that’s licensing freedoms or other measures” for the sector.
Reeves previously announced Covid-era business rates relief would end in April, with some village pubs facing paying business rates for the first time.
Celebrity chef and pub owner Tom Kerridge said business secretary Peter Kyle was “incredibly supportive” on the issue but he had yet to convince Treasury chiefs.
Tom 52, added: “[From] the conversation with Peter that isn’t something that he has control over. That sits in Treasury. He has a meeting with the Treasury next week.”
A spokesman for trade body UK Hospitality said: “Nothing less than a rethink on business rates will solve the problem. Licencing and planning reforms don’t help.
“They are useful but they are not sufficient to offset the tax increases. The question remains whether the Government will move fast enough and far enough.”
It comes after the chancellor announced in November that Covid-era business rates relief would end, having previously been slashed from 75% to 40%.
A growing backlash has led to Labour MPs being barred from boozers and restaurants across the nation with Reeves banned from her local in Pudsey, West Yorks.
An unnamed worker at the Rock Inn in Leeds, West Yorks, raged: “When it comes to April and the minimum wage goes up, there’s going to be loads of pubs closing. They’re just killing us off.”
The Treasury is confident its measures such as capping bill increases next year at 15% will be enough to help businesses avoid serving last orders.
A spokesman said: “We’re protecting pubs, restaurants and cafés with the Budget’s £4.3bn support package. Without this support, pubs would face a 45 per cent increase in the total bills they pay next year. Because of the support we’ve put in place, we’ve got that down to just 4 per cent.”