The UK government has finally stepped in to offer pubs a lifeline—but for many, it may feel like too little, too late.
After mounting pressure from Labour MPs worried about thousands of pub closures across the country, Chancellor Rachel Reeves sent junior Treasury minister Dan Tomlinson to announce a 15% discount on business rates for pubs.
The catch? This relief will only last for three years, and much of the wider hospitality sector—plus pharmacies and other small businesses—have been left out.
Limited Relief Amid Rising Costs
Tomlinson told MPs that the new support will begin in April and is expected to be worth around £1,650 for the average pub next year.
Pubs’ bills will also be frozen in real terms for two additional years.
While music venues will also benefit, other sectors—including hotels, cafes, and independent retailers—have received no immediate financial relief.
“This government does want to go further to support pubs,” Tomlinson said, praising pubs as the “cornerstone of so many communities” and vital to social life across the country.
Shadow Chancellor and MPs Voice Frustration
Labour MPs lined up to condemn the measures as insufficient.
Shadow Chancellor Mel Stride called the partial U-turn “far too little and far too late,” adding that high streets need permanently lower business rates—not temporary fixes for pubs alone.
MPs like Rachael Maskell and Stella Creasy warned that independent traders and hospitality businesses would continue to struggle.
Jonathan Brash highlighted a hotel in his constituency facing a near doubling of its business rates, warning that towns full of entrepreneurs could see opportunities vanish.
Industry Groups Say Relief Is Too Narrow
Campaign for Real Ale (CAMRA) chair Ash Corbett-Collins criticized the plan as short-sighted, noting pubs still face uncertainty over business rates.
Emma McClarkin, CEO of the British Beer & Pub Association, welcomed the immediate relief but acknowledged it would not solve long-term challenges.
Meanwhile, the Federation of Small Businesses warned that excluding other sectors—from hairdressers to bakers—risks further business closures.
Policy Chair Tina McKenzie highlighted that many small firms could face rate increases of 52% over the next three years, while pubs receive relief, painting a picture of an uneven playing field.
Budget Changes Have Left Businesses Vulnerable
The current measures come on top of previous Budget decisions.
While a lower “multiplier” was introduced to cut business rates, this was offset by removing the Covid-era 40% discount for hospitality, leisure, and retail businesses.
Combined with new property valuations and national insurance increases, staffing and operational costs have become more expensive, leaving businesses scrambling to survive.
Hotels and Pharmacies Feel Ignored
The relief does little for hotels, which could see bills rise by an average of £111,300 over three years.
Pharmacies have also expressed alarm at skyrocketing costs.
Henry Gregg, CEO of the National Pharmacy Association, warned that some could be pushed “to the brink of collapse” despite serving vital community needs.
James Lowman of the Association of Convenience Stores said local shops would feel “neglected and dismissed,” noting that without extra support, jobs could be lost and high street investment delayed.
Rising Insolvencies Highlight Urgency
Recent weeks have seen hospitality groups like The Revel Collective, TGI Fridays UK, and Leon enter insolvency amid higher costs and weak consumer confidence.
Chris Tulloch of Blind Tiger Inns, which operates 24 pubs, expressed skepticism over the government’s “lifeline,” saying the support feels like a partial backtrack rather than a genuine rescue.
The Wider Picture for High Streets
The government promised a High Streets Strategy later this year to help shops adapt to changes in consumer habits, such as online shopping and remote working.
Tomlinson emphasized that this would be a cross-government effort, but no concrete measures or funding have been outlined yet.
For now, pubs may breathe a small sigh of relief, but other businesses—especially those outside the spotlight—continue to face an uphill battle against soaring rates and rising costs.
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