Starmer Urged to Rethink Business Rate Reforms to Save Pubs
Labour MPs are pressing Sir Keir Starmer to reconsider the proposed changes to business rates, emphasizing the urgent need to protect pubs and hospitality businesses. The pub industry is sounding the alarm over potential closures as Covid-era business rate relief is set to expire in April.
Urgent Call for Action
During Prime Minister’s Questions, Rachael Maskell, Labour MP for York Central, highlighted the imminent crisis facing High Street establishments. She urged Starmer to reassess the planned reforms to stave off a catastrophe in the hospitality sector. In response, the Prime Minister confirmed ongoing discussions with industry leaders about additional support.
Business Rate Reforms Explained
– Budget Cuts: In her November Budget, Chancellor Rachel Reeves slashed business rate discounts from 75% to 40%, with no discounts expected from April onwards.
– Rateable Value Adjustments: While the government has lowered the multiplier used to calculate business rates, it has also revised the rateable values, leading to increased bills for many businesses.
– Impact on Hospitality:
– In York, hospitality businesses anticipate an average rate rise of 41%.
– Music venues could see increases of 44.4%.
– Independent shops may face boosts around 27%.
Maskell emphasized the crippling effects of these changes, stating, Many simply won’t survive this. Could the Prime Minister urgently review the business rate proposals and send a representative to my summit at the end of January to discuss this crisis?
Responses from Leaders
Although Starmer confirmed ongoing discussions with the hospitality sector, he provided no specific details on potential relief options. The Prime Minister’s spokesman declined to offer a running commentary but did mention a £4.3 billion support package provided to the hospitality industry over the past three years.
Some Labour MPs remain hopeful that additional relief measures could prevent unrest similar to past protests related to tax reforms. Discussions are varied: some MPs advocate for a year-long delay in implemented reforms, while others call for enhanced relief levels, reflecting a consensus that adjustments are necessary.
Call from Industry Leaders
Ash Corbett-Collins, chairman of The Campaign for Real Ale (CAMRA), stated, The government must address the reality that many viable pubs could shut down. Instead of prolonging uncertainty, the Prime Minister and Chancellor should announce a rethink now.
In a recent meeting, Treasury Minister Dan Tomlinson engaged with representatives from the British Beer and Pub Association to explore potential relief alternatives. In their December correspondence, the association requested a targeted 30% business rates relief specifically for pubs, emphasizing the need to safeguard approximately 15,000 jobs at risk.
Conclusion
As the deadline for business rate reform approaches, the pressure is mounting on Sir Keir Starmer and government officials to reconsider their approach. The future viability of pubs and the broader hospitality industry hangs in the balance, making it vital for leaders to take a proactive stance in preventing widespread closures.