More Businesses Call for Inclusion in Pub Rates Backtrack
High street shops, pharmacies, and music venues are urging Rachel Reeves to eliminate the impending business rates increases that will also impact pubs. In the coming days, the government is expected to announce a significant reversal of the increases set for pubs in England. This pushback comes as landlords and pub owners express strong discontent, with over 1,000 pubs banning Labour MPs from their establishments.
Wider Call for Business Rates Relief
While the government is preparing to adjust the rates for pubs, various lobby groups and backbench MPs are advocating for broader relief efforts. They emphasize that many other businesses will struggle to cope with the impending higher rates. Key points include:
– In November, the Chancellor cut back business rate discounts from 75% to 40%, with no discounts set to apply starting April.
– Alongside this, substantial increases in the rateable values of pub premises have left landlords facing much higher bills.
– Reports indicate that the upcoming changes will be limited to pubs, excluding the wider hospitality sector.
Concerns from Retail Associations
The British Independent Retailers Association (Bira) has raised concerns about the exclusion of its members—encompassing high street shops, restaurants, and cafes—from these supportive measures. Andrew Goodacre, Bira’s chief executive, remarked that independent retailers face exactly the same challenges as pubs but have been overlooked in discussions about additional aid.
– He added, Perhaps independent retailers need to follow the pubs’ example and start banning MPs from their premises too.
The Broken Business Rates System
The British Retail Consortium (BRC) criticized the current business rates system, describing it as not fit for purpose. BRC chief executive Helen Dickinson stated, This latest announcement looks like another sticking plaster on a broken system rather than the more fundamental reform required.
Jon Collins, chief executive of music venue body LIVE, expressed the need for comprehensive support: If the government is preparing a U-turn on business rates for pubs, it must not leave live events and arenas behind.
The Impact on Other Sectors
According to the National Pharmacy Association’s CEO Henry Gregg, pharmacies could face a staggering 140% increase in rates. The lobby group representing gyms, pools, and leisure centers reported potential rate hikes of up to 60%. Huw Edwards, chief executive of ukactive, warned that failure to provide a business rates support package to gyms, pools, and leisure centers will lead to higher prices, reduced services, redundancies, and in some cases, the loss of gyms from our communities.
These concerns found echoes in Parliament, with Conservative MP Dame Caroline Dinenage writing to the Chancellor, stressing that venues, clubs, and cinemas up and down the country are already struggling for survival.” She cautioned that the planned rates reforms risk “pushing many over the edge,” urging greater transparency from the Treasury.
Government’s Stance and Future Actions
Earlier this week, Rachel Reeves noted that while the government has reduced taxes on pubs and hospitality, the Independent Valuation Office has increased the perceived value of these properties. In an interview with Good Morning Britain, she said:
I want to support our pubs; I want to support our high streets. That’s why we made the change to the rates. But I recognize that many are still struggling, and we’re working with them.
As the government prepares to backtrack on the business rates specifically for pubs, the broader outcry from various sectors indicates the urgent need for inclusive solutions that address the financial burdens faced by all businesses.