Rachel Reeves has confirmed pubs will receive “more temporary support” after an outcry over the impact of an upcoming hike in business rates.
The Chancellor said temporary financial relief granted to the hospitality sector during the pandemic “does need to be unwound”, but added that “it’s about the speed at which you do that”.
The rise in rates is due to a combination of properties being revalued and the withdrawal of Covid-era discounts which was announced by Ms Reeves in November.
Ministers had put in place a £4.3 billion fund to help pubs with the transition to higher rates, but the Chancellor confirmed extra financial support is coming with an announcement “in the next few days and weeks”.
It is one in a string of U-turns by Sir Keir Starmer’s Government, which most recently included a rowback on its flagship policy of mandatory digital IDs.
Ms Reeves told BBC Breakfast on Wednesday: “There’s a number of things happening with business rates. There’s been a revaluation of the value of properties. This is the first one since the pandemic. So rateable values were going to go up.
“And there’s a gradual withdrawal of some of the temporary support that went in during Covid.
“Now we’ve put in another £4.3 billion of additional support to phase that transition, but we do recognise that for some pubs there is still a big increase, and so we’re working pretty intensely at the moment. Again, I want to make sure that we get this right.
“These changes are not due to come in for a few more months. So we’re going to get this right. But I think most people would accept that now the pandemic is over, some of that temporary support does need to come away, but it’s about the speed at which you do that.”
