Labour MPs accused Rachel Reeves of scoring “another own goal” after she was forced to U-turn on her pubs tax policy, amid warnings that further battles were still to come on business rates.
The Chancellor is poised to hand struggling pubs across the country additional support following an outcry that soaring business rate rises set out in the Budget risked killing off the local pub.
Reeves commissioned officials before Christmas to look at a package of support for pubs after the sector warned that changes to business rates, dubbed the pubs tax, would see them paying thousands extra in tax each year.
The extra financial help is due to be announced in the “coming days”, according to the Treasury, but MPs and campaigners are already warning that it will not be enough and are demanding Reeves set out support across the high street.
Officials were keeping tight-lipped as to the details of the package, stating only that it would look at the business rates valuations, which have rocketed since they were last valued in 2021 during the pandemic.
It is likely to come alongside a relaxation of licensing and regulations, to allow pubs to stay open later and serve drinks on pavements.
‘My town will suffer’
The decision to provide extra support comes despite both the Chancellor and Sir Keir Starmer previously insisting that pubs would be protected from the rises in business rates as a result of measures taken in the Budget and no additional aid was needed.
It is just the latest in a series of U-turns from the Treasury, and has sparked a bitter backlash from Labour MPs already angry over the performance of the Government.
One senior backbencher was furious, telling The i Paper: “It’s another own goal by the Treasury. It was just so obvious.”
The comments were echoed by Emma Lewell, MP for South Shields, who attacked ministers for the slow response.
“Here we go again,” she said. “My colleagues and I made the Government aware of the impending crisis back in October. They didn’t act.”
Lewell said it was only after pressure from MPs that the Treasury chose to provide extra support. “It shouldn’t have taken them so long to take action,” she told The i Paper as she vowed to continue pushing for financial help for the rest of the hospitality sector.
“My town will still suffer,” she added.
‘Help should be extended to resaturants, cafes and hotels’
Campaign groups have criticised the decision to focus the financial aid purely on pubs, with UK Hospitality demanding the measures be extended to restaurants, cafes and hotels, which are also in line for business rate rises.
As a result of the Government’s changes, by April 2029 rates will rise by 115 per cent for the average hotel and 76 per cent for a pub, compared with 4 per cemt for large supermarkets
It has prompted calls for the Chancellor to increase the discount on the business rates multiplier from 5p to 20p, in a bid to offset the loss of the 40 per cent Covid-era rate relief, which is due to run out in April.
Kate Nicholls, Chair of UKHospitality, said: “The entire hospitality sector is affected by these business rates hikes – from pubs and hotels to restaurants and cafes.
“We need a hospitality-wide solution, which is why the Government should implement the maximum possible 20p discount to the multiplier for all hospitality properties.”
MPs have also raised concerns that the business rate rises will hit independent shops, and are calling for extra support to be extended to retail outlets as well.
Rachael Maskall, Labour MP for York Central, said: “I am really glad that the Treasury is working to find a solution for pubs, but want to ensure that all businesses, including independent shops get the support that they need. The pubs lobby is well organised, but independents do not have the same leverage, so hope that Government will also come up with a solution for all businesses in urgent need of support.”
Treasury says they didn’t know how rates rise would hit businesses
Treasury insiders said the decision came because they were not able to fully calculate how the rates rise would affect certain businesses when drawing up the plans before the Budget.
Officials were forced to use aggregate data when it came to drawing up the business rates policy, because personal tax information is confidential, The i Paper was told.
Your next read
square POLITICSPub tax U-turn ‘inevitable’ – as landlords demand lower business rates
square POLITICS ExclusiveUK prepared to seize more of Putin’s shadow ships
square POLITICSWhen will HS2 run? Is NPR dead? Key questions for UK’s ailing railways
square KEIR STARMERKeir Starmer: What Isla, 9, taught me about child poverty
It was only after the policy was announced that it became clear what the impact would be on specific venues, such as pubs.
The Treasury is planning on implementing root and branch reforms to business rates policy, but said it would hand pubs extra support by looking at the valuations to help them through the next few years in recognition of their “cultural and social” importance to British life.
Tory Leader Kemi Badenoch launched a stinging attack on the Government’s handling of the situation, telling LBC: “Labour MPs ran away for Christmas and were banned from every single pub in the country. They’ve come back realising how much people hate them and are demanding a U-turn.”
Hence then, the article about another own goal anger at latest reeves u turn as she backs down on pubs tax was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( ‘Another own goal’: Anger at latest Reeves U-turn as she backs down on pubs tax )
Also on site :