Thu, 08 Jan 2026

Thu, 08 Jan 2026 Government to water down business rate rise for pubs

The hospitality industry had called for a rethink of planned changes to the way the tax based on property is calculated.

* The Treasury has recognised the financial difficulties facing many pubs after sharp rises in rateable values.
* Industry groups and landlords have been lobbying for more support, with over 1,000 pubs banning Labour MPs from their premises.
* The move will apply only to pubs, not the whole hospitality sector.
* The Treasury is also expected to relax licensing rules to allow longer opening hours and pavement areas for drinking.
* Business rates bills for pubs are calculated by multiplying rateable value by a set figure (the multiplier).
* The government may reduce the multiplier or boost the £4.3bn transitional relief fund.
* Industry groups welcome the news, with some calling for the support to be extended to all hospitality businesses affected by rising rates.
* The change is seen as a climbdown on Chancellor Rachel Reeves' November Budget, which scaled back business rate discounts and introduced big upward adjustments to rateable values.
* The issue has been devolved in all four UK nations, but only England's discount during the pandemic applied to hospitality businesses.
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