The Treasury has announced a massive support package for our struggling pubs facing rocketing bills. This includes 15% off their business rates bills from April.
Chancellor Rachel Reeves has thrown pubs a lifeline as the government has announced boozers and music venues will get 15% off their business rates bills from April as part of a major support package. The development comes after fierce criticism of Budget measures as the change marks yet another U-turn from the Labour government.
Today Treasury minister Dan Tomlinson said the property tax bills in England will then be “frozen in real terms” for the next two years. Mr Tomlinson told MPs: “This week is also independent venue week, so it’s particularly appropriate that I can announce also that our package will apply to music venues too.”
The minster added: “Many live music venues are valued as pubs and many pubs are grassroots live music venues. It would not be right to seek to draw the line so tightly so as to include some and not others.”
Alongside these changes the Labour minister added licensed venues could open until 1am or 2am in the summer in order to show games featuring UK teams during the men’s football World Cup. The minster said: “We will legislate to increase the number of temporary events notices for pubs and other hospitality venues, whether that is to help them screen World Cup games or other community and cultural events.”
The Commons also heard the Government will consult on loosening planning rules to help pubs, which could mean they will be able to add guest rooms or expand without planning applications. Tomlinson said: “We will also continue to engage with the sector to ensure that other retail, leisure and hospitality premises have flexibility.”
The relief effort comes after hundreds of pubs owners joined a campaign organisation called Wonky Table, which imposed bans on Labour MPs, intensifying pressure on the government ahead of vital local elections in May. The typical rise in business rates is projected to exceed £32,700 by the decade’s end.
The fresh system announced in the Budget will result in reduced business rates for some properties valued below £500,000, while larger premises will face a higher multiplier.
Previously UKHospitality Chief Executive Allen Simpson stated: “Our hotels, restaurants and cafes, to name a few, all face their business rates bills increasing by thousands, driven by the same large increases to rateable values affecting pubs. These businesses employ six in seven people in hospitality.”
He added: “While it’s positive there will be an announcement soon, this is a hospitality-wide problem that requires a hospitality-wide solution.”
The row comes as several airports have sounded the alarm warning the new commercial property tax system would impact their neck of the woods. Manchester Airport, Luton and Gatwick have all cautioned they might scale back certain investment plans due to increased taxes.