Unfair Rates: Will Pubs Steal the Spotlight in Business Relief?

As the government prepares to announce potentially relief for pubs facing steep business rates increases, a chorus of high street shops, pharmacies, and music venues are demanding to be included in any changes. Rachel Reeves, the Chancellor, is looking to address backlash from landlords and pub owners who are outraged by the upcoming rate hikes, with over 1,000 pubs reportedly banning Labour MPs from their venues in protest.

Reeves’ November Budget diminished business rate discounts available since the pandemic from a huge 75% to merely 40%, and eliminated discounts entirely from April onward. This leaves pub owners confronting alarming rate rises due to increases in the rateable values of their properties. However, reports indicate that any forthcoming relief may be exclusive to pubs, leading other business sectors to voice their discontent.

The British Independent Retailers Association (Bira) expressed frustration over the lack of relief for its members, which include independent shops and restaurants that face similar issues. Bira’s chief executive, Andrew Goodacre, suggested those retailers might need to adopt the same protest tactics as pubs in order to gain attention.

Another voice in the mix, Surinder Arora, CEO of the Arora Group that manages several hotels, criticized the potential selective relief as unfair, particularly after facing a staggering £12.4m rate increase due to the new assessment policies. Arora forewarned that such cost hikes might translate to higher prices for customers and potential reductions in service or expansion.

The British Retail Consortium (BRC) labeled the current business rates system as deficient, with its chief executive, Helen Dickinson, calling for a more comprehensive reform rather than temporary fixes. The call for broader support was echoed by Jon Collins, head of the music venues group LIVE, who cautioned against isolating the pub sector from others in the hospitality and entertainment industries.

Moreover, health sectors like pharmacies and gyms are bracing for drastic rate changes; some could see increases up to 140%. ukactive’s CEO Huw Edwards warned that failing to assist leisure facilities might lead to higher fees, job losses, and reduced access for local communities.

Politicians are rallying around concerns too, with forecasts indicating that many venues may be driven to the brink of closure without a robust business rates support package. Dame Caroline Dinenage, a Conservative MP, highlighted the urgency of reassessing proposed changes to prevent driving struggling venues out of business.

Reeves acknowledged the debate and stated the government is currently working with various sectors to examine the implications and necessary support to ensure both pubs and high streets can continue to thrive despite these challenging economic circumstances.