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Government Prepares Pub-Specific Business Rates Relief After Revaluation Shock

Industry groups warn of hundreds of pub closures this year, with alcohol duty rising on 1 February.

Overview

  • The Valuation Office Agency told MPs that about 5,100 pubs have seen their rateable values at least double, with average pub valuations up roughly a third based on 2024 assessments due to apply from April.
  • Ministers have signalled a U-turn focused on pubs’ business rates, with details pending and reports indicating the Chancellor is resisting extending help to restaurants, hotels and other venues.
  • The Autumn Budget cut the business rates multiplier but starts phasing out the 40% retail, leisure and hospitality discount, supported by a £4.3bn transitional relief scheme running to 2029.
  • Parliament approved the Finance Bill on Tuesday, confirming an inflation-linked rise in alcohol duty from 1 February.
  • UKHospitality projects around 540 pub closures in 2026 without broader support, and figures including Andy Burnham are urging a rebalancing of high street taxes over temporary fixes.