The Government is set to U-turn on hiking business rates for pubs and announce a new support package in the coming days, it has emerged. Enraged hospitality bosses had threatened to protest the tax rises they feared would permanently many venues.
In a shocking turn of events, the Chancellor is set to offer a financial lifeline to pubs by changing how the tax grab is calculated. Licensing laws may also be changed. The 180 degree turn will be viewed as another embarrassing U-turn for the Labour Government which has already rowed back on disability benefit cuts, changes to the winter fuel payment scheme and the family farm tax.
Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said: “News that the Government is going to look again at business rates increases is potentially a huge win for pubs across the country and shows Government have not only listened to our concerns but acted.
(Image: UK PARLIAMENT/AFP via Getty Imag)
“This could save locals, jobs, and means publicans can breathe a huge sigh of relief.
“The BBPA has worked closely with ministers on a pub-specific solution that would ensure that bills are reduced in line with the Government’s previous promises to pubs.
“We now keenly await to see the detail of the upcoming announcement.”
Meanwhile, Kemi Badenoch dubbed the imminent U-turn on pub business rates “too little, too late”. Responding to reports that ministers are preparing additional support for pubs facing a large increase in rates, Mrs Badenoch said: “Yesterday Keir Starmer told us Labour had ‘turned a corner’.
“Well, it looks like they’ve turned the corner straight into their first U-turn of 2026. Labour are killing Britain’s pubs. This rumoured U-turn is too little, too late. It’s time to back our local pubs.”
(Image: PA Wire)
Conservative shadow business secretary Andrew Griffith said the U-turn showed the budget was “already falling apart”.
He added: “This humiliating about-face appears to do nothing for shops, restaurants, hotels and markets which all face a more than 50% increase. With no detail provided, this is not the stability Rachel Reeves promised – it is a recipe for economic disaster.”
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