THE UK government on Tuesday announced a support package for pubs and live music venues in England, offering relief from increases in property taxes announced last year that affected the hospitality sector.
The measures follow concerns raised after planned rises in commercial property taxes were set out in November’s budget, prompting warnings of closures across the sector. More than 1,000 landlords had responded by banning Labour Party lawmakers from their premises.
Pubs have faced long-term pressures linked to changes in drinking habits and demographics, though they continue to play a role in local communities.
SECTOR WARNED THAT JOBS AT RISK
Under Tuesday’s package, pubs will receive a 15 per cent discount on their business rate bills, with those bills frozen for a further two years.
“This support is worth 1,650 pounds for the average pub just next year, and will mean that around three quarters of pubs will see their bills either fall or stay the same next year,” Treasury minister Daniel Tomlinson told parliament.
The British Beer and Pub Association, which had warned that 15,000 jobs could be at risk without support, said there would be “a sigh of relief from landlords across the country”.
The government also said on Tuesday that it would review how hotels are valued for calculating business rates, which could lead to further relief.
“The reality remains that we still have restaurants and hotels facing severe challenges from successive budgets. They need to see substantive solutions that genuinely reduce their costs,” said Kate Nicholls, chair of UKHospitality.
LATEST GOVERNMENT U-TURN
The decision to ease the tax rise for pubs is the latest in a series of partial or full reversals by prime minister Keir Starmer’s government as it seeks to address a weak economy, respond to polling pressures, and balance public finances.
Earlier reversals followed pressure from within the Labour Party and voters, including proposals to raise more tax from farmers, cut welfare spending, and reduce subsidies on energy bills for elderly people.
Highlighting the pressures on the sector, Revel Collective, which owns 62 pubs and bars across Britain, appointed administrators on Tuesday. It said 21 sites would close immediately, resulting in 590 job losses.
Alongside the support package, the government also launched a new High Street Strategy, which it said was aimed at supporting the retail and hospitality sectors.
(With inputs from agencies)
