Rachel Reeves has refused to offer new financial support to pubs, despite Sir Keir Starmer admitting many face hardship from upcoming business rate changes.
The Chancellor’s November Budget confirmed that pandemic-related rates relief would conclude in April, following a reduction from 75 per cent to 40 per cent.
Some village pubs are now facing business rates for the first time following a post-Budget revaluation.
The row has escalated, with Labour MPs reportedly turned away from dozens of pubs across the country, with Rachel Reeves barred from her local in Pudsey, West Yorkshire.
Rachel Reeves has refused to offer new financial support to pubs
|
GETTY
Speaking on Monday, the Prime Minister told GB News: “We’re working with the sector, particularly in hospitality.”
He admitted the upcoming revaluation will leave pubs and other businesses “struggling with the business rates applicable to them”.
Business Secretary Peter Kyle is set to push the case with Treasury officials next week, following growing pressure from the hospitality industry.
TV chef Tom Kerridge said Mr Kyle had been “incredibly supportive” but did not have the power to grant tax
Sir Keir admitted the upcoming revaluation will leave pubs and other businesses ‘struggling’ with business rates
|
GETTY
Speaking to LBC, Mr Kerridge said he had raised the issue with the Business Secretary at a recent meeting.
“That sits in Treasury. He has a meeting with the Treasury next week. He’s presenting the case. He was incredibly supportive,” he explained.
The chef celebrity added that any move to ease the tax burden remains the Chancellor’s decision.
Sir Keir previously suggested the Government was looking at “licensing freedoms or other measures” to help the hospitality sector.
PUBS IN PERIL – READ THE LATEST:
Mr Kerridge said he had raised the issue with the Business Secretary at a recent meeting
|
GETTY
Treasury sources moved quickly to temper hopes of any cut to business rates, insisting that proposed licensing freedoms would not reduce pub bills.
Officials remain confident that transitional measures, including a 15 per cent cap on bill increases next year, will be sufficient for pubs affected by the reforms.
Before the Budget, ministers had hinted at a possible 20p discount for hospitality businesses, but the final announcement delivered just 5p, sparking intense lobbying.
Industry leaders have met with officials from both Downing Street and the Treasury in recent weeks, warning of serious consequences from the changes.
The reforms come alongside the first revaluation of hospitality businesses in six years, adding to the financial strain.
UK Hospitality, the trade body for the sector, said only a full review of business rates would tackle the crisis.
“Nothing less than a rethink on business rates will solve the problem,” a spokesman for the organisation said.
“Licencing and planning reforms don’t help. They are useful but they are not sufficient to offset the tax increases.”
The spokesman also questioned “whether the Government will move fast enough and far enough” to protect the 75,000 pubs, bars, restaurants and hotels across England facing higher bills.
A spokesman for the Treasury said: “We’re protecting pubs, restaurants and cafés with the Budget’s £4.3billion support package.
“Without this support, pubs would face a 45 per cent increase in the total bills they pay next year.
“Because of the support we’ve put in place, we’ve got that down to just 4 per cent.
“This comes on top of our efforts to ease licencing to help more venues offer pavement drinks and put on one-off events, maintaining our cut to alcohol duty on draught pints, and capping Corporation Tax.”