{"id":408890,"date":"2026-01-14T15:24:14","date_gmt":"2026-01-14T15:24:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/408890\/"},"modified":"2026-01-14T15:24:14","modified_gmt":"2026-01-14T15:24:14","slug":"rachel-reeves-particularly-concerned-about-pub-business-rates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/408890\/","title":{"rendered":"Rachel Reeves &#8216;particularly concerned&#8217; about pub business rates"},"content":{"rendered":"<p>Becky MortonPolitical reporter <\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/01\/1768392369_261_grey-placeholder.png\" class=\"sc-5340b511-0 gUePlo hide-when-no-script\" aria-label=\"image unavailable\"\/><img decoding=\"async\"   src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/01\/18a993e0-f136-11f0-8813-c1dd7edee31e.jpg.webp.webp\" loading=\"eager\" alt=\"Reuters Chancellor Rachel Reeves\" class=\"sc-5340b511-0 hLdNfA\"\/>Reuters<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The chancellor has said she is &#8220;particularly concerned&#8221; about the impact of business rates on pubs, as she hinted she was resisting calls for more support for the rest of the hospitality sector.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Rachel Reeves confirmed an announcement to soften the effect of looming rate rises on pubs was coming in the next few days.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">But asked if this would extend to cafes, small hotels or independent restaurants, she told BBC Breakfast the &#8220;biggest concern&#8221; was around pubs, which she said were badly hit during the pandemic and were facing a particular increase in business rates.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Businesses have warned they will struggle to pay higher rates, after Covid-era relief ends in April and sites are revalued.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The government has already announced a \u00a34.3bn fund to help businesses as the relief is phased out.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Reeves confirmed &#8220;there is additional support coming&#8221; for pubs before new rates come into effect in April.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;I think most people would accept that now the pandemic is over, some of that temporary support does need to come away,&#8221; she told the BBC.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;But it&#8217;s about the speed at which you do that.&#8221;<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">However, other businesses including shops, pharmacies, hotels and music venues have also called for more help to cope with increased rates, along with the Conservatives and some Labour MPs.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Asked what support other smaller hospitality businesses would get, Reeves said: &#8220;I think that people can see that the biggest impact and the biggest concern right now is around pubs. <\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;Some of the smallest businesses, particularly some cafes, don&#8217;t pay any business rates at all because they&#8217;re not big enough to do so.&#8221;<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The climbdown on pub business rates is one of a number of U-turns by the government in recent months, including on inheritance tax for farms and <a target=\"_self\" href=\"https:\/\/www.bbc.co.uk\/news\/articles\/c3385zrrx73o\" class=\"sc-f9178328-0 iCaRzc\" rel=\"nofollow noopener\">this week&#8217;s reversal of plans to make digital ID mandatory to prove the right to work in the UK<\/a>.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Sir Keir Starmer was challenged during Prime Minister&#8217;s Questions over whether he would change the government&#8217;s approach to business rates by Kemi Badenoch. <\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The Conservative leader urged the PM to adopt her party&#8217;s policy and abolish the tax for all High Street small businesses.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">In response, Sir Keir said the government was &#8220;working with the sector to ensure that they get the support that they need&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Business rates will increase sharply over the next three years as Covid-era support is phased out and property values are adjusted to reflect a return to normal business after the pandemic.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Business rates are a tax based on the &#8220;rateable value&#8221; of a firm&#8217;s premises, which is reassessed every five years.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">On Tuesday, Jonathan Russell, chief executive of the Valuation Office Agency, said that while pubs had seen their valuations jump by an average of 32%, more than 5,000 had seen their rateable values at least double.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Speaking to BBC Two&#8217;s Politics Live, Business Secretary Peter Kyle insisted the government did not have the &#8220;granular detail&#8221; about how individual businesses would be impacted before the chancellor announced changes in her November Budget.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">However, Russell told MPs on the Commons Treasury Committee that his agency had been clear about the impact on different sectors before the Budget.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The government is expected to make changes to how business rates are calculated for pubs, resulting in smaller increases.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">However, industry body UKHospitality has said business rate rises will affect the whole sector and see venues forced to close.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">It has estimated the average hotel faces an increase of 115% over the next three years, higher than its estimate for pubs of 76%.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The British Independent Retailers Association has said its members face the same challenges as pubs but have been left out of discussions about additional support.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The National Pharmacy Association has said the sector could face a 140% increase in rates, while the lobby group for gyms, pools and leisure centres said those businesses faced potential rate increases of 60%.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/01\/1768392369_261_grey-placeholder.png\" class=\"sc-5340b511-0 gUePlo hide-when-no-script\" aria-label=\"image unavailable\"\/><img decoding=\"async\"   src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/07\/2bce6ee0-0b00-11f0-97d3-37df2b293ed1.png.webp.webp\" loading=\"lazy\" alt=\"Thin, red banner promoting the Politics Essential newsletter with text saying, \u201cTop political analysis in your inbox every day\u201d. There is also an image of the Houses of Parliament.\" class=\"sc-5340b511-0 hLdNfA\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"Becky MortonPolitical reporter Reuters The chancellor has said she is &#8220;particularly concerned&#8221; about the impact of business rates&hellip;\n","protected":false},"author":2,"featured_media":408891,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":{"0":"post-408890","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/408890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=408890"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/408890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/408891"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=408890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=408890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=408890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}