UK Government U-Turns on Pub Business Rates, Offers £80m Support Package
In a move that has eased pressure on the pub industry, the UK government has announced a new support package worth over £80 million per year for pubs and live music venues in England. The announcement comes after a fierce backlash against the original plans to overhaul business rates, which were set to increase property tax bills by an average of 76% for pubs across the country.
The new package is expected to provide relief to pubs, with an average saving of £1,650 per year, thanks to a 15% discount on their new business rates bill. However, critics argue that this is not enough to offset the significant cost increases facing the sector, including rising wages, energy bills, and VAT.
The British Beer and Pub Association's chief executive, Emma McClarkin, has welcomed the move, saying it will provide "certainty for tens of thousands of pubs" but called for further work on a long-term plan for permanent reform of business rates. Trade bodies have also criticized the government for not going far enough, given the cost pressures facing the sector.
The hospitality industry as a whole has been under intense financial pressure in recent years, with significant increases in costs including higher employer national insurance contributions, rises in the minimum wage, energy costs, and inflation. In fact, one pub was forced to close every day last year due to increasing bills.
The government's original plan included a £4.3 billion support package that would have offset the end of Covid support schemes, but this did not address the significant increase in property tax bills caused by revaluations since the pandemic. The industry had complained that the increase in rates over the next three years was unaffordable.
However, James Daunt, boss of Waterstones, has defended the government's approach to the high street, arguing that changes to business rates are "sensible" and have benefited shops in struggling areas. Despite this, the pub industry remains wary of further rate increases and calls for long-term reform.
In a move that has eased pressure on the pub industry, the UK government has announced a new support package worth over £80 million per year for pubs and live music venues in England. The announcement comes after a fierce backlash against the original plans to overhaul business rates, which were set to increase property tax bills by an average of 76% for pubs across the country.
The new package is expected to provide relief to pubs, with an average saving of £1,650 per year, thanks to a 15% discount on their new business rates bill. However, critics argue that this is not enough to offset the significant cost increases facing the sector, including rising wages, energy bills, and VAT.
The British Beer and Pub Association's chief executive, Emma McClarkin, has welcomed the move, saying it will provide "certainty for tens of thousands of pubs" but called for further work on a long-term plan for permanent reform of business rates. Trade bodies have also criticized the government for not going far enough, given the cost pressures facing the sector.
The hospitality industry as a whole has been under intense financial pressure in recent years, with significant increases in costs including higher employer national insurance contributions, rises in the minimum wage, energy costs, and inflation. In fact, one pub was forced to close every day last year due to increasing bills.
The government's original plan included a £4.3 billion support package that would have offset the end of Covid support schemes, but this did not address the significant increase in property tax bills caused by revaluations since the pandemic. The industry had complained that the increase in rates over the next three years was unaffordable.
However, James Daunt, boss of Waterstones, has defended the government's approach to the high street, arguing that changes to business rates are "sensible" and have benefited shops in struggling areas. Despite this, the pub industry remains wary of further rate increases and calls for long-term reform.
. Those pubs were like, on the brink of collapse due to these crazy business rates hikes. It's like, fair enough that they're gonna take care of it now, but what really gets me is the need for a long-term plan for permanent reform. I mean we all know that one-time fixes aren't always gonna cut it, right? We gotta think about the bigger picture & make sure we're not just patching up symptoms instead of addressing the root cause.
. I mean, who doesn't love a good pub crawl, but with increasing bills and energy costs, it was getting tough. This 15% discount on business rates bill is like finding a 20p coin in your pocket after buying a round of beers – you still got something out of it! 
Now, I know the trade bodies are all like "not enough" but c'mon, £1,650 saving per year is still better than nothing, right? 
The gov's original plan was like trying to fit 3 square pegs into a round hole - just didn't work out. But hey, this is a good start, and fingers crossed it's not just a "pub-lic" relations stunt 
!
i mean they're already struggling to stay afloat with rising costs and stuff, but now the gov's decided to u-turn on their plans & offer a sweet £80m support package 
that's like, super helpful! but idk if it's enough cuz ppl are saying it's still not enough 
still good that they're trying tho 
they're offering £80m in support, which is better than nothing, I guess... but 15% off business rates just isn't gonna cut it when you're talking about rising wages and energy bills that are still whacking pubs hard 
trade bodies are saying the gov isn't doing enough and I don't blame 'em... it's been a tough time for pubs and the whole hospitality industry
! I mean, pubs are like our own little community centers - where we go to relax with friends, listen to live music, and just have a good time. And now it seems like the government is trying to support them more 
.
. I went to my friend's birthday party last year at this tiny pub in town, and it was so expensive! The drinks were like £5 each, and the food was like £10 per plate... it added up quick 
. It's not just about the pubs themselves - it's about losing that community vibe and feeling like we can hang out without spending a fortune 
.
THE AVERAGE SAVING OF £1,650 PER YEAR IS A GOOD START, BUT I HOPE THEY'LL KEEP WORKING ON A LONG-TERM PLAN TO MAKE SURE Pubs CAN THRIVE WITHOUT BREAKING THE BANK 
! The thought of all those pubs closing down is just heartbreaking 
. I mean, what's the point of having a vibrant community hub if it can't support itself? £1,650 might not seem like a lot to some people, but for a small pub that's relying on every penny to stay afloat, that's a massive difference 
. At least now they're offering some form of support, but £80m isn't exactly going to make everyone whole again 
. It's not just about pubs, though - it's about all the other small businesses that are struggling to stay afloat too 
. We need to support our local high streets and help these businesses thrive 
!
, can't the gov just make up their minds already? £80m support package sounds nice and all but it's like 1% of what those pubs are really struggling with... rising wages, energy bills, VAT - they're still gonna be in a mess. and don't even get me started on james daunt saying changes to business rates are "sensible" 
Finally, a move to help the pubs after all those years of getting squeezed by the government 
. And don't even get me started on the so-called "sensible" approach by James Daunt... more like a slap in the face to struggling pub owners, if you ask me 
. And honestly, £1,650 per year doesn't go very far when you're talking about the kind of costs pubs are facing... energy bills, wages, VAT - it all adds up 
. Still, I guess it's a step in the right direction 
.
I hope they'll revisit this & make it more permanent soon 
