{"id":255354,"date":"2026-01-28T05:26:13","date_gmt":"2026-01-28T05:26:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/255354\/"},"modified":"2026-01-28T05:26:13","modified_gmt":"2026-01-28T05:26:13","slug":"pubs-to-get-support-package-after-business-rates-backlash","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/255354\/","title":{"rendered":"Pubs to get support package after business rates backlash"},"content":{"rendered":"<p>Archie Mitchell,Business reporterand<\/p>\n<p>Faarea Masud,Business reporter<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/01\/1768389368_961_grey-placeholder.png\" class=\"sc-5340b511-0 gUePlo hide-when-no-script\" aria-label=\"image unavailable\"\/><img decoding=\"async\"   src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/01\/fd6cb9d0-fb72-11f0-b7fd-f5e7f9ed0815.jpg.webp.webp\" loading=\"eager\" alt=\"Getty Images Woman with  black, shoulder-length hair, wearing a light blue shirt and brown apron pulls a pint of lager behind the bar in a pub\" class=\"sc-5340b511-0 hLdNfA\"\/>Getty Images<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Pubs and music venues in England will be given a 15% discount on their business rates bills from April and will not see increases for two years, the government has announced. <\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Treasury Minister Dan Tomlinson said the three-year package would be worth \u00a31,650 for the average pub in 2026-27.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">It comes after a backlash against November&#8217;s Budget, which left many facing major increases in their business rates bills, and led to more than a thousand pubs banning Labour MPs from their premises.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">UK Hospitality has warned that hotels, restaurants and other businesses in the sector are also at risk, calling for the support package to be widened.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">According to the government, the package will cost \u00a380m in its first year, and the subsequent two years will be valued by the Office for Budget Responsibility (OBR).<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Tomlinson said pubs are &#8220;the cornerstone of so many communities&#8221; and the government wanted to &#8220;go further&#8221; in supporting them after the number of venues fell by nearly 7,000 since 2010.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Questioned about why the Treasury has made a series of changes to major policies, Chancellor Rachel Reeves said the government &#8220;listens when people raise concerns&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;We look at the detail of that and try to make sure we get it right,&#8221; she added. <\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The government also promised to review how pubs are valued by the Valuation Office Agency (VOA), ahead of the next revaluation of premises in 2029.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Shadow Chancellor Mel Stride dismissed the announcement and described it as a &#8220;sticking plaster&#8221;, asking: &#8220;Is this it?&#8221;<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;After weeks of telling our local pubs that help was on the way, this is all they get.&#8221;<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">He said the measures would &#8220;only delay the pain for a while&#8221; before warning that &#8220;thousands of businesses despair as their bills skyrocket&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Liberal Democrat Treasury spokesperson Daisy Cooper said the financial aid still left pubs facing higher business rates bills, and it did &#8220;nothing at all&#8221; for other high street businesses.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">She called for the government to increase business rates discounts for all retail, hospitality and leisure businesses, and for an &#8220;emergency&#8221; VAT cut for the hospitality sector for a year.<\/p>\n<p>&#8216;Not a lifeline&#8217;<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Chris Tulloch, managing director of Blind Tiger Inns, said the measures were not &#8220;a rescue package nor a lifeline&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">He runs 23 pubs across the north west of England including in Burnley, Manchester and The Wirral, and employs 250 staff.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;It&#8217;s almost like the government are saying to pubs &#8216;we were going to shoot you and now we&#8217;re not&#8217;,&#8221; he told the BBC. <\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;It&#8217;s not making things better, it just means things won&#8217;t go quite as bad quite as quickly.&#8221;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/01\/1768389368_961_grey-placeholder.png\" class=\"sc-5340b511-0 gUePlo hide-when-no-script\" aria-label=\"image unavailable\"\/><img decoding=\"async\"   src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/01\/66a91020-fb95-11f0-bd4c-9d8c48f8eab8.jpg.webp.webp\" loading=\"lazy\" alt=\"Chris Tulloch Man with short hair dark hair and a beard, wearing glasses, a grey t-shirt and dark jacket stands in front of a bar\" class=\"sc-5340b511-0 hLdNfA\"\/>Chris Tulloch<\/p>\n<p>Chris Tulloch is managing director of Blind Tiger Inns<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Within the last 24 months, his profit margins have decreased by around 25% as labour costs and business rates rise, despite his pubs seeing more footfall and revenue in recent years. It&#8217;s all because of rising costs such as National Insurance contributions, he says.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The latest relief means his costs are still going to rise, despite the discount, he says.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Tulloch prefers to see a total reform of the business rates system because the &#8220;current hospitality crisis is worse for us than Covid&#8221;, when many venues had to stop operating to stem the spread of the virus.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">He says that pubs are currently limiting investment in their businesses because of the high costs of day-to-day operations. <\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">It means, he says, the industry will see problems worsen in the future as government discounts come to an end.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;Pubs won&#8217;t expand, end up hiring less staff, and make less profit,&#8221; he says.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Business rates are devolved in Scotland, Wales and Northern Ireland. It means each will receive a proportional amount to decide what to do with.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">UK Hospitality, which represents the wider sector, said the measures &#8220;address an acute challenge facing pubs&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets,&#8221; chair Kate Nicholls said.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The British Beer and Pub Association (BBPA) said it would &#8220;stave off the immediate financial threat posed by accelerating business costs and will help keep the doors open for many&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">BBPA chief executive Emma McClarkin says landlords across the country will &#8220;breathe a sigh of relief&#8221;, but the organisation&#8217;s focus will now turn to long-term reforms to business rates.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Bosses from across the hospitality sector had warned that, despite tweaks in the chancellor&#8217;s November Budget, they were facing an increase in their business rates bills from April.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">This is because, although the government has lowered the multipliers &#8211; a figure used to work out how much businesses pay in rates &#8211; many pubs, restaurants and hotels are still seeing their bills go up due to their properties being revalued, and the new values were often much higher.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">On top of the rise in property valuations, small retail, hospitality and leisure businesses in receipt of discounts that have been in force since the pandemic, which dropped from 75% to 40% in November, will no longer receive this rebate from April.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Industry body UK Hospitality warned the average pub&#8217;s business rates bill would increase by 76% over the next three years without a package of support.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">The government had already announced a \u00a34.3bn fund to help businesses as rates relief is phased out. <\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">Tuesday&#8217;s additional package means that three in four pubs will see their business rates bills fall or stay the same next year, the government said.<\/p>\n<p class=\"sc-9a00e533-0 eZyhnA\">As part of a further bid to support struggling pubs, the government is planning to allow them and other licensed venues to stay open after midnight when home nations teams play in this summer&#8217;s men&#8217;s World Cup.<\/p>\n","protected":false},"excerpt":{"rendered":"Archie Mitchell,Business reporterand Faarea Masud,Business reporter Getty Images Pubs and music venues in England will be given a&hellip;\n","protected":false},"author":2,"featured_media":255355,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":{"0":"post-255354","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/255354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=255354"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/255354\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/255355"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=255354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=255354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=255354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}