The UK government is facing mounting pressure to extend its planned business rates support far beyond the pub sector, as high street businesses warn that a piecemeal approach will not prevent widespread closures.
Sector-Wide Calls for Support
Following reports that Chancellor Rachel Reeves is preparing a U-turn and a new support package specifically for pubs, trade bodies representing a swathe of the economy are demanding the relief be broadened. They argue that the entire retail, hospitality, and leisure sector is buckling under the weight of impending rate increases, not just public houses.
Kate Nicholls, chair of UKHospitality, emphasised the need for a "hospitality-wide solution." Data from her organisation reveals the scale of the challenge: hotels in England are confronting an average business rates increase of 115% by 2030, compared to a 76% rise for pubs.
The chorus for help is wide-ranging. Jon Collins of LIVE, which represents music venues, warned that live events and arenas must not be left behind. Meanwhile, the National Pharmacy Association stated that pharmacies are facing a staggering 140% hike. Its chief executive, Henry Gregg, called for pharmacies to be exempted from business rates entirely, akin to GP practices.
The Root of the Rate Rise
The dramatic surge in business rates stems from a double blow: a revaluation of properties and the withdrawal of Covid-era discounts, which was announced by Chancellor Reeves in the November budget. While a £4.3bn transition fund was initially established to help pubs, Treasury sources indicate that additional measures, including further rates relief and cuts to licensing red tape, are now being finalised for announcement.
Ros Morgan, chief executive of the Heart of London Business Alliance, said the expected U-turn acknowledges that the autumn budget was "untenable." However, she criticised a "temporary sticking plaster solution aimed at just one sector" and demanded fundamental reform of the business rates system itself.
"Time and again we’ve seen piecemeal responses like this, but they won’t save our high streets," Morgan stated, listing hotels, theatres, galleries, offices, and gyms as among those facing steep bill increases.
Political and Industry Reaction
The pub industry itself gave a cautious welcome to the rumours of a U-turn. Emma McClarkin of the British Beer and Pub Association said it was "potentially a huge win" and that publicans could "breathe a huge sigh of relief," while awaiting the details.
Politicians across the spectrum weighed in. The Liberal Democrats demanded immediate proposals to provide clarity and prevent bankruptcies. Conservative leader Kemi Badenoch criticised the move as "too little too late," while Labour's Shadow Chancellor Sir Mel Stride urged broader action, stating: "The problem is far bigger than pubs. Businesses right across Britain are at breaking point."
Richard Tice of Reform UK warned that pub closures would be a "cultural catastrophe" and questioned what the Chancellor would do for the rest of the hospitality sector. The unified message from business and political figures is clear: saving the high street requires a comprehensive strategy, not a selective rescue.
