As the hospitality industry braces for the end of Covid-era business rates relief in April, Chancellor Rachel Reeves has signalled openness to extending support beyond just the pub sector.
Last week, the BBC reported that the Treasury was poised to announce further assistance for pubs, which – like all hospitality businesses – are facing sharp increases in their rateable values. This comes as the temporary pandemic-related business rates holiday is set to expire, leaving many establishments struggling to pay higher bills.
While Reeves had initially hinted at resisting calls for more support beyond pubs, she later told a press conference that the government was “working with the hospitality sector” and did not rule out additional relief for the wider industry.
Opposition MPs and trade bodies have been pressing for any new assistance to be extended to other businesses like hotels and restaurants, not just pubs. Kate Nicholls from Hospitality UK said she was “encouraged that the door appeared to be open for non-pub businesses also facing steep rises in business rates.”
The £4.3 billion in caps on rates rises over the next three years, announced in the Autumn Budget, will help smooth out increases that could see pub bills rise by 76% and hotel bills by 115%. However, many smaller cafes and restaurants remain concerned about their ability to pay higher rates after the pandemic support ends.
Reeves acknowledged that the “biggest impact and biggest concern right now is around pubs,” but said the government was looking to support the hospitality sector more broadly as the transitional relief comes to an end. Treasury officials indicated that a specific package for pubs would be unveiled in the coming days, leaving the door open for potential wider assistance as well.
The hospitality industry has been one of the hardest hit by the pandemic, and businesses are now facing the dual challenge of recovering from Covid’s impacts while grappling with the prospect of sharply higher business rates. The Chancellor’s signals suggest the government may be willing to provide further targeted support to help the sector weather this storm.