There could be help on the way for pubs over business rates – but not hotels.
All week, Sky News deputy political editor Sam Coates has been digging into the issues around business rates and pubs.
A variety of factors, including revaluations and the ending of COVID-era support, mean hospitality venues could potentially see their bills rise by more than 100%, Sam told Anne in Thursday morning’s Politics at Sam and Anne’s.
Both pubs and hotels are also looking down the barrel of massive business rate hikes.
Sam said only a few hours after Wednesday’s Prime Minister’s Questions – where the topic came up – he picked up rumours in the industry that some sort of announcement could be coming that would help pubs, but not hotels.
He said this could be because pubs are “more politically sensitive”.
Sam added: “But talking to a lot of people, if you do a one-off grant, then that’s expensive and doesn’t make the ultimate problem – which bites in three years’ time, go away.
“And hotels are amongst the worst affected and get the biggest increase in business rates in three years’ time – so there’s still big issues there.
“But the politics and the economics of rolling over the treasury on this are just so hard – and to my ear, a couple of days ago, they sounded like they pretty much wanted to stick and were being quite stubborn.”
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In November’s budget, Chancellor Rachel Reeves announced changes to how business rates are calculated, with a new band for retail, hospitality and leisure – bringing an end to the relief scheme first introduced in 2020 during the pandemic.
The sector argues that the new business rates, while lower than before COVID, do not go far enough.
They say that because the tax is based on rateable property values, which is an official estimate of a commercial property’s annual rental value, they are disproportionately affected because they have physical stores, restaurants and pubs – unlike online giants.
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Several pubs have already barred Labour MPs in protest at the changes.
As Sky News previously reported, a cabinet revolt is brewing over the matter.
However, Sky News understands the government has been warning businesses not to protest over the changes if they want to get any concessions.
