Keir Starmer opens door to financial lifeline for pubs
Sir Keir Starmer has opened the door to a financial lifeline for pubs after hitting them with a punishing business rate hikes at the Budget, reports BritPanorama.
The Prime Minister insisted he wants to “keep working” with the hospitality sector over implementing an enhanced support package. This comes as various sectors, including pubs, airports, music arenas, and hotels, face significant rate increases beginning in April.
Should the government change its policy, it may garner criticism due to previous u-turns, including on winter fuel payments and benefit cuts. Labour has proposed a £4.3 billion transitional relief package, with over 1,000 pubs reportedly banning Labour MPs from their premises following the tax hike.
Chancellor Rachel Reeves mentioned in the Budget that firms would “enjoy the lowest rates since 1991.” However, the changes to rateable values and reduced relief mean many businesses will experience noticeable increases.
Starmer addressed these concerns on LBC Radio: “Obviously, what’s happened is there were reductions in place during Covid which were always going to be unwound. At some point, the overall rates are going to be lower. But I accept that because of revaluation, that means that some will have their bills going up. We’re putting in place transitional relief.”
He reiterated the need for dialogue with the sector, especially among hospitality and pubs, to explore further support, including potential licensing freedoms.
Analysis from UKHospitality showed that the average hospitality property in England will see business rates increase by £32,714 over three years, with pubs expected to pay £12,900 more. UK Hospitality chief Kate Nicholls stated that the sector is at breaking point and urged for an improved package of assistance.
Lawson Mountstevens, Managing Director of Star Pubs, expressed readiness to collaborate with the government, advocating for a pub-specific discount on rates bills as a sustainable solution for community hubs.
Emma McClarkin, Chief Executive of the British Beer and Pub Association, welcomed the government’s willingness to engage, highlighting the urgent need for support given the increasing financial pressures on publicans. She asserted that introducing a dedicated business rates relief is crucial to prevent closures and job losses, ensuring pubs remain integral to local communities.
The discussions surrounding potential support measures come at a critical time, as many pubs reassess their viability amid escalating costs and changing economic conditions. The outcome of these deliberations may prove significant for the resilience and future of the UK’s hospitality sector.
The situation underscores a broader narrative about the challenges faced by traditional businesses within the changing economic landscape post-COVID and the government’s role in fostering a supportive environment for recovery and sustainability.
