Saving Our Pubs: Labour's Call to Rethink Business Rate Reforms

As Labour MPs rally for Sir Keir Starmer to urgently reassess business rate reforms, the pub industry voices concerns about looming closures post-Covid relief expiration in April. During Prime Minister’s Questions, York Central MP Rachael Maskell pressed for action to prevent a potential crisis impacting local businesses and High Streets nationwide. Chancellor Rachel Reeves recently announced a reduction in business rate discounts for the hospitality sector, dropping from 75% to 40%, while plans for zero discounts by April are set to increase the financial burden on many.

York’s hospitality businesses could face staggering rate hikes—averaging 41% for pubs and 44.4% for music venues. Maskell, engaged with local biz owners, highlighted their fears of closures, urging immediate government attention to avoid further devastation.

While the government provides £4.3 billion in support over three years, Labour MPs express cautious optimism about future relief, emphasizing a collective necessity for reforms to prevent unrest like that seen over inherited land tax proposals. Meanwhile,***The Campaign for Real Ale*** chairman Ash Corbett-Collins called for a decisive government response to avoid permanent pub closures due to rising costs.

One potential alternative comes from Conservative leader Kemi Badenoch, who proposed full business rate elimination for pubs if elected, which aims to ease financial strains on these establishments. The discussion continues amidst ongoing talks between the Treasury and the `