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Reeves Poised to Reverse Pub Rates Plan With New Short-Term Support

Ministers now concede that without fresh help, combined tax changes would sharply raise pub bills.

Overview

  • Multiple outlets report the chancellor is expected to announce additional financial support or alternative relief for pubs within days following pressure from trade bodies and around 30 Labour MPs.
  • Work and Pensions Secretary Pat McFadden said the government is in talks with the sector and acknowledged that, absent intervention, the revaluation and removal of pandemic-era relief would drive steep bill increases; a £4.3bn transitional fund is already in place.
  • Measures under consideration include a pub-specific discount or a larger business rates multiplier relief of up to 20p, alongside regulatory easing such as later opening and more use of outdoor space.
  • Allies say Rachel Reeves ordered a Treasury review before Christmas, with minister Dan Tomlinson leading work on options, and reporting suggests a longer-term overhaul of pub rate valuations is being scoped for 2029.
  • Industry analysis warns average pub bills could rise by about £11,000, or 37%, fueling campaigns that have seen more than 1,000 pubs bar Labour MPs and prompting rival parties to demand broader support across hospitality.