Government expected to announce pub business rates climbdown after industry warnings

The government is set to announce a change in how business rates are calculated for pubs, following a campaign from industry groups and MPs.

Treasury officials are expected to reduce the percentage of a pub’s rateable value used to calculate business rates, along with a “transitional relief” fund.

It comes after Rachel Reeves scaled back discounts to business rates that had been in place since the pandemic, with plans to scrap the discounts entirely from April.

However, landlords and some MPs warned that the move would lead to many pubs closing as a result – with more than 1,000 pubs across the country banning Labour MPs from their premises in protest.

The climbdown is the latest U-turn made by the government, following changes in policy on the winter fuel allowance, welfare reform and inheritance tax changes for farms.

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