Reeves blocks support for pubs despite Starmer acknowledging sector’s struggles
Chancellor will end Covid-era business rates relief in April, piling pressure on hospitality businesses
DOMINIC PENNA, BEN RILEY-SMITH
Rachel Reeves is blocking new financial support for pubs despite Sir Keir Starmer admitting that many “will struggle” with new business rate changes.
In her November Budget, the Chancellor announced that Covid-era business rates relief will end in April, having previously been scaled back from 75 per cent to 40 per cent.
At the same time, some village pubs face paying business rates for the first time under a revaluation of their rateable values announced after the Budget.
A growing backlash has resulted in Labour MPs being barred from dozens of pubs and restaurants across Britain, with Ms Reeves banned from her local in Pudsey, West Yorkshire.
Speaking on Monday, Sir Keir appeared to open the door to extra support, telling LBC: “We’re talking to the sector, particularly hospitality and pubs, about what further support we can put in, whether that’s licencing freedoms or other measures.”
But The Telegraph understands the Treasury is insisting it will not change the tax policy itself.
Tom Kerridge, the TV chef, said on Monday that Peter Kyle, the Business Secretary, was being “incredibly supportive” on the issue but had to convince the Treasury.
He told LBC he had asked Mr Kyle for support at a recent event and was told the Treasury needed to be convinced to sign off the money.
Mr Kerridge said of the prospect of a tax reduction: “[From] the conversation with Peter that isn’t something that he has control over. That sits in Treasury. He has a meeting with the Treasury next week. He’s presenting the case. He was incredibly supportive.”
Sir Keir talked up the need to work with pubs to help with the challenges during his first public event of the New Year, which focused on Government support with the cost of living.
The Prime Minister told GB News: “We’re working with the sector, particularly in hospitality. Obviously, there were reductions [in business rates] in place because of Covid, which were going to come to an end.
“There are then transitional provisions to help. The overall rating level is going down but I do acknowledge, for pubs and others, that the revaluation means that they will struggle in relation to the business rates applicable to them. That’s why we’re working with them.”
The comments raised hopes that the Government could change the discount for 75,000 pubs, bars, restaurants and hotels in England in the new business rates approach. They come weeks after the Government folded after a year-long stand-off with farmers by substantially raising the point at which a new inheritance tax raid will kick in.
However, Treasury insiders hours later played down the prospect of a change in the tax rate itself, insisting new licencing freedoms would not impact the tax bill being faced by pub owners.
The Telegraph: continue reading
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