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Treasury Holds Firm on Pub Business Rates as Starmer Weighs Licensing Relief

The government’s focus on easing licensing rules instead of cutting tax has drawn fresh pressure from publicans and Labour MPs for direct fiscal help.

Overview

  • Keir Starmer acknowledged pubs will struggle with April’s revaluation and said officials are discussing longer opening hours and pavement drinking to boost trade.
  • Treasury sources ruled out changes to tax settings from the November Budget, pointing to a £4.3bn support package, a 15% cap on year‑one increases and a claimed cut in the sector’s aggregate rise to about 4%.
  • Business Secretary Peter Kyle is engaging with industry and is set to present the sector’s case to Treasury officials, while Exchequer minister Dan Tomlinson met the British Beer and Pub Association, which said the government is in listening mode.
  • Political pressure is intensifying as The Times reports dozens of Labour backbenchers pushing for extra support and some ministers expressing concerns, with i reporting MPs believe a policy tweak before the Spring Statement is likely.
  • Industry figures warn of steep rises despite multiplier cuts, with chef Tom Kerridge citing bills jumping from £50,000 to £124,000 and UK Hospitality estimating a 76% average increase for pubs, following a year that saw about one pub close each day.