Treasury unveils support package worth over \u00a380m a year for pubs and live music venues<\/p>\n
The Treasury has unveiled a support package worth more than \u00a380m a year for pubs and live music venues in England and Wales, in a climbdown that follows a fierce backlash against plans to overhaul business rates.<\/p>\n
Trade bodies had warned that Rachel Reeves\u2019s changes to business rates, announced at the chancellor\u2019s November budget, would trigger widespread closures and job losses in the hospitality sector, particularly in pubs.<\/p>\n
On Tuesday, the government announced financial support to mitigate the effect of the rates shake-up, after officials admitted that they had not foreseen its total financial impact.<\/p>\n
The package, final details of which were still being hammered out on Monday night, is expected to be worth more than \u00a380m a year, over three years, for pubs and gig venues.<\/p>\n
Dan Tomlinson, the exchequer secretary to the Treasury, said every pub in England and Wales would get 15% off its new business rates bill from 1 April, worth an average of \u00a31,650 for each. Bills will then be frozen in real terms, factoring in inflation, for a further two years.<\/p>\n
Tomlinson said:<\/p>\n
This support is worth \u00a31,650 for the average pub just next year, and will mean that around three-quarters of pubs will see their bills either fall or stay the same next year.<\/p>\n
Tomlinson said three-quarters of pubs would see their rates bill fall or stay the same next year and rates across the sector as a whole would be lower in 2028-29 than they are now.<\/p>\n
Share<\/a><\/p>\n Updated at\u00a010.19 EST<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Closing summary<\/p>\n The Treasury has unveiled a support package worth more than \u00a380m a year for pubs and live music venues in England and Wales, in a climbdown that follows a fierce backlash against plans to overhaul business rates.<\/p>\n Trade bodies had warned that Rachel Reeves\u2019s changes to business rates, announced at the chancellor\u2019s November budget, would trigger widespread closures and job losses in the hospitality sector, particularly in pubs.<\/p>\n On Tuesday, the government announced financial support to mitigate the effect of the rates shake-up, after officials admitted that they had not foreseen its total financial impact.<\/p>\n The package, final details of which were still being hammered out on Monday night, is expected to be worth more than \u00a380m a year, over three years, for pubs and gig venues.<\/p>\n Dan Tomlinson, the exchequer secretary to the Treasury, said every pub in England and Wales would get 15% off its new business rates bill from 1 April, worth an average of \u00a31,650 for each. Bills will then be frozen in real terms, factoring in inflation, for a further two years.<\/p>\n Tomlinson said:<\/p>\n This support is worth \u00a31,650 for the average pub just next year, and will mean that around three-quarters of pubs will see their bills either fall or stay the same next year.<\/p>\n Tomlinson said three-quarters of pubs would see their rates bill fall or stay the same next year and rates across the sector as a whole would be lower in 2028-29 than they are now.<\/p>\n Our other main stories:<\/p>\n Thank you for reading. We\u2019ll be back tomorrow. Bye! \u2013 JK<\/p>\n Share<\/a><\/p>\n Rachel Kelly, associate policy director of the British Property Federation, said:<\/p>\n We welcome any additional support for pubs but the fact that emergency measures are needed just weeks after Government introduced its new two-tier system for business rates shows the changes have not been properly considered.<\/p>\n The withdrawal of business rates relief for high street businesses has only been partially offset by the new split system, whereby smaller retail and hospitality premises pay a lower level of tax than larger, more valuable properties. This change hits all parts of the economy, with shops and restaurants as well as larger offices, warehouses and manufacturing buildings all potentially facing higher bills.<\/p>\n The changes have made a bad system worse and Government must ultimately lower and fix the multiplier tax rate and move to annual revaluations to avoid these sudden swings and emergency measures in the future.<\/p>\n Share<\/a><\/p>\n The Institute of Directors says the business rates system needs a broader overhaul.<\/p>\n Anna Leach, chief economist at the IoD, said:<\/p>\n The Institute of Directors welcomes today\u2019s decision by the government to provide targeted business rates relief for pubs, recognising the intense pressures facing this sector. This support will offer much-needed breathing space for businesses grappling with rising costs and tight margins.<\/p>\n More broadly, the business rates system remains in urgent need of reform to address the disincentives to investment embedded in the current framework, and we welcome the government\u2019s commitment to take action in this area.<\/p>\n That said, stronger policy design at an earlier stage would deliver greater benefits for business confidence, planning and costs. We reiterate our call for more detailed, sector-by-sector analysis of the impacts of tax changes to be undertaken alongside each budget. This would allow concerns to surface earlier in the process, enabling risks to be identified and addressed before they crystallise.<\/p>\n Share<\/a>Treasury unveils support package worth over \u00a380m a year for pubs and live music venues<\/p>\n The Treasury has unveiled a support package worth more than \u00a380m a year for pubs and live music venues in England and Wales, in a climbdown that follows a fierce backlash against plans to overhaul business rates.<\/p>\n Trade bodies had warned that Rachel Reeves\u2019s changes to business rates, announced at the chancellor\u2019s November budget, would trigger widespread closures and job losses in the hospitality sector, particularly in pubs.<\/p>\n On Tuesday, the government announced financial support to mitigate the effect of the rates shake-up, after officials admitted that they had not foreseen its total financial impact.<\/p>\n The package, final details of which were still being hammered out on Monday night, is expected to be worth more than \u00a380m a year, over three years, for pubs and gig venues.<\/p>\n Dan Tomlinson, the exchequer secretary to the Treasury, said every pub in England and Wales would get 15% off its new business rates bill from 1 April, worth an average of \u00a31,650 for each. Bills will then be frozen in real terms, factoring in inflation, for a further two years.<\/p>\n Tomlinson said:<\/p>\n This support is worth \u00a31,650 for the average pub just next year, and will mean that around three-quarters of pubs will see their bills either fall or stay the same next year.<\/p>\n Tomlinson said three-quarters of pubs would see their rates bill fall or stay the same next year and rates across the sector as a whole would be lower in 2028-29 than they are now.<\/p>\n Share<\/a><\/p>\n Updated at\u00a010.19 EST<\/p>\n The support package for pubs and music venues is worth more than \u00a380m a year, according to the Treasury.<\/p>\n We are waiting for more details\u2026<\/p>\n Share<\/a><\/p>\n Updated at\u00a010.09 EST<\/p>\n The National Pharmacy Association, which represents 6,000 community pharmacies across the UK, said excluding pharmacies that play a \u201cvital role\u201d on British high streets, from the support package is \u201can insult\u201d.<\/p>\n Henry Gregg, chief executive of the National Pharmacy Association said:<\/p>\n This increase will push some pharmacies to the brink of collapse.<\/p>\n Pharmacies are essential to their communities but the government have taken a decision today to prioritise pubs over the health needs of millions of people who use pharmacies every day.<\/p>\n It\u2019s an insult to hard pressed pharmacists who are still struggling under the effects of historic NHS underfunding that simply isn\u2019t sufficient to pay inflated business rates, medicine prices and their other bills.<\/p>\n Pharmacies are not like pubs, cafes or restaurants. They receive 90% of their funding from the NHS and cannot simply increase their prices for the nations prescriptions to absorb this eye watering increase. <\/p>\n Denying pharmacies the business rate support that is available to GPs and other parts of the NHS is yet another example of them being treated as second class citizens in our health service. We should treat dedicated servants of our NHS better.<\/p>\n Share<\/a><\/p>\n The British Chambers of Commerce welcomed the package but said business rates \u201ctweaks\u201d are not enough.<\/p>\n Kate Shoesmith, director of policy at the BCC, said it latest research shows that concern about business rates is its highest for at least eight years, with a third of all firms worried. In the hospitality sector that rises to 49%.<\/p>\n This is good news for pubs and music venues, but it does not go far enough to protect many other businesses which are under huge pressure.<\/p>\n Companies have proven remarkably resilient through years of turmoil, including Brexit, Covid, rising energy bills and geopolitical crises, but there are limits to how much they can endure.<\/p>\n With new employment legislation coming down the tracks, a further inflation busting rise in the minimum wage and continuing global headwinds, the government must ease this burden.<\/p>\n The Labour Manifesto, in 2024, correctly identified that business rates were a disincentive to investment, created uncertainty and placed an undue burden on high streets.<\/p>\n It pledged to reform them and it is now time the government delivered on that promise.<\/p>\n She said as a first step to fixing business rates, the government should move to annual revaluations, to give greater certainty around rateable value changes, and adopt a single flat rate 40p multiplier.<\/p>\n These changes would provide greater transparency, simplicity and fairness ahead of a full review of the system.<\/p>\n Share<\/a><\/p>\n The emergency pubs relief will provide some respite, but the government must deliver urgently on its \u201cpromise to support the whole hospitality sector\u201d, says the trade body UKHospitality.<\/p>\n Restaurants and hotels still face severe challenges.<\/p>\n Kate Nicholls, chair of UKHospitality, said:<\/p>\n We welcome the recognition by the prime minister and the chancellor of the scale of the challenges facing the hospitality sector. They have listened to us about the acute cost challenges facing businesses, all of which is impacting business viability, jobs and consumer prices.<\/p>\n The rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution. The government\u2019s immediate review of hospitality valuations going forward is clear recognition of this.<\/p>\n The devil will be in the detail, but we need to see pace and urgency to deliver the reform desperately needed to reduce hospitality\u2019s tax burden, drive demand, and protect jobs and growth. We will work with the government over the next six months to hold their feet to the fire to deliver this.<\/p>\n This emergency announcement to provide additional funding is helpful to address an acute challenge facing pubs.<\/p>\n The reality remains that we still have restaurants and hotels facing severe challenges from successive budgets. They need to see substantive solutions that genuinely reduce their costs.<\/p>\n Without that clear action, they will face increasingly tough decisions on business viability, jobs and prices for consumers. Those are costs borne by us all, and I hope the government delivers on its promise to support the whole hospitality sector.<\/p>\n Share<\/a>Whitbread, Mitchells & Buters shares rise<\/p>\n Shares in Whitbread, owner of Premier Inn and pub chains including Beefeater and Brewers Fayre, and pub operator Mitchells & Butlers rose after the support package was announced.<\/p>\n Whitbread is one of the main risers on the FTSE 100 index, up nearly 2%, while M&B shares gained 1%.<\/p>\n Share<\/a>Government to publish highstreet strategy later this year<\/p>\n The government will publish a highstreet strategy later this year to help shops in towns and cities. Treasury minister Dan Tomlinson said:<\/p>\n We do understand it\u2019s a tough time for other businesses on the high street.<\/p>\n We\u2019ve already taken significant steps to acknowledge this and support businesses, including \u00a34.3bn of business rate support at the budget.<\/p>\n But over the last decade consumers have changed their habits, increasingly working from home and shopping online, and these trends continue to make it harder for high street businesses.<\/p>\n He went on to say:<\/p>\n We will work with businesses and representative bodies to bring this strategy together. Share<\/a>Pubs to be able to stay open late to show World Cup games this summer<\/p>\n Tomlinson told MPs that licensed venues could open until 1am or 2am in the summer in order to show games featuring UK teams during the men\u2019s football World Cup. He said:<\/p>\n \u201cWe will legislate to increase the number of temporary events notices for pubs and other hospitality venues, whether that is to help them screen World Cup games or other community and cultural events.\u201d<\/p>\n The Commons also heard the government will consult on loosening planning rules to help pubs, which could mean they will be able to add guest rooms or expand without planning applications. \u201cWe will also continue to engage with the sector to ensure that other retail, leisure and hospitality premises have flexibility,\u201d Tomlinson said.<\/p>\n Share<\/a><\/p>\n Treasury minister Dan Tomlinson told the Commons pubs had not had the support they have needed \u201cfor too long\u201d, and referenced 7,000 pubs shutting under Conservative led-governments between 2010 and 2024. He told MPs:<\/p>\n \u201cThis government does want to go further to support pubs. Pubs are the cornerstone of so many communities, they are essential to the social and cultural life of so many places across the country \u2026 Today I can confirm that from April, every pub in England will get 15% off its new business rates bill on top of the support announced at Budget. Pubs\u2019 bills will then be frozen in real terms for a further two years.<\/p>\n \u201cThis support is worth \u00a31,650 for the average pub, just next year, and will mean that around three-quarters of pubs will see their bills either fall or stay the same next year. Then bills will be frozen in real terms for the next two years.\u201d<\/p>\n He explained that the support will also apply to live music venues:<\/p>\n \u201cThis week is also independent venue week, so it\u2019s particularly appropriate that I can announce also that our package will apply to music venues too. Many live music venues are valued as pubs and many pubs are grassroots live music venues. It would not be right to seek to draw the line so tightly so as to include some and not others.\u201d<\/p>\n Share<\/a>Treasury announces business rate support package \u2018worth \u00a31,650 per pub\u2019<\/p>\n In a statement to the Commons, Dan Tomlinson, exchequer secretary to the Treasury, has announced changes to how it will impose business rates on hospitality venues.<\/p>\n He said the government \u201cdoes want to go further to support pubs\u201d and under the new measures every pub in England will get 15% off its new business rates bill from April. The bill will then be frozen in real terms, factoring in inflation, for a further two years.<\/p>\n He added that the package would apply to music venues too and the government also said the government would announce a review of the way hotels are valued.<\/p>\n The support package would be worth \u00a31,650 for the average pub, Tomlinson said, and would mean three quarters of pubs would see their rates bill fall or stay the same next year. He said the decision would mean the amount of business rates paid by the pub sector as a whole would be lower in 2028\/29.<\/p>\n He said the government would review the methodology used to calculate how much pubs should pay in rates, with the aim of completing this in time for the next revaluation.<\/p>\n Share<\/a><\/p>\n Updated at\u00a009.44 EST<\/p>\n We are still waiting for the exchequer secretary\u2019s statement on a support package for pubs, which have been hit hard by changes to business rates.<\/p>\n Share<\/a><\/p>\n The chancellor has just responded to questions about business rates for pubs.<\/p>\n The exchequer secretary will be setting out more detail of support for pubs later today, around 1.30pm, Rachel Reeves said.<\/p>\n We are determined to support pubs, often the lifeblood of so many communities, but also to support all of our retail, hospitality and leisure sector.<\/p>\n We are putting more money in people\u2019s pockets by cutting energy bills, by cutting train fares and ensuring we\u2019re getting people back to work. So they\u2019ve got more money to spend on the things they love and not just the essentials.<\/p>\n She added:<\/p>\n I don\u2019t think anyone in this house seriously believes that temporary support during the pandemic should continue infinitely. It would not be the right thing, and it would not be affordable for other taxpayers to do that. That\u2019s why we are tapering gradually, with a \u00a34.3bn support package in the budget and some more targeted support for pubs published later today.<\/p>\n She stressed that 7,000 pubs closed under the previous Conservative government, saying: \u201cWe have permanently lowered the tax rate that retail, hospitality and leisure pay.\u201d<\/p>\n Share<\/a><\/p>\n Updated at\u00a007.32 EST<\/p>\n Q: Another family run business in Chelmsford that\u2019s been going for 25 years will see their monthly rates more than double from April. They\u2019ve said they will simply have to close their doors if this goes ahead, resulting in 40 people losing their jobs.<\/p>\n Tomlinson replied:<\/p>\n The key thing to note here is that there is a significant difference between the change in the rateable value and the change in the business rates this year. We have stepped in to cap the increases for bills at \u00a3800 for those coming into the system for the first time, or for most high street businesses, the increase will be 15%. The very largest will see increases of 30%.<\/p>\n He also said:<\/p>\n I do understand that there are businesses all across the economy who will have seen increases in their rateable values since the pandemic. And that\u2019s precisely why we stepped in with the support package.<\/p>\n The really small bookshops up and down the country, many, many of them will not be paying any business rates at all because they will be in receipt of small business rates relief. Of course, there will be some in some parts of the country that will have seen either the rates bill values increase or because of the government\u2019s decision to slowly wind down the temporary pandemic support that will see an increase in their bills.<\/p>\n But we\u2019re capping those increases this year and in subsequent years in order that the transition can be manageable for those businesses because of course, we want to support bookshops on our high streets. They are incredibly important, along with all the other high street retailers.<\/p>\n
It will be a cross-Government strategy, and we will be looking at what more government can do to support our high streets.<\/p>\n