In July, the Treasury confirmed to The Morning Advertiser (The MA) that it planned to set lower multipliers for pub businesses in the Autumn Budget.
Additionally, an interim report released this month said lower permanent rates for pubs and hospitality with rateable values under £500,000 would take effect from April 2026.
While operators welcomed the certainty of long-term relief, many voiced concern the support would not offset rising wage bills, food inflation and other new regulatory costs.
JW Lees managing director William Lees-Jones argued the numbers didn’t quite add up.
Deep-rooted issues
He told The MA: “I’ll believe it when I see it. I hope that this is a genuine piece of support from the Government.
“But 50% off something that was increased by 120% is still an increase of 10%, so it will be a combination of revised rateable values and multipliers that then gives us the rate.”
In addition, Cheshire Cat Pubs & Inns owner Tim Bird warned the reforms could leave some pubs worse off: “Cheshire Cat currently benefits from a 40% discount on business rates, which, despite the drop from a 75% discount, is still worth having.
“I predict without any doubt, this Government will do away with the 40% discount and not make up the 40% loss in a reduction in the multiplier, so we will end up paying more.
“No one who is supposedly representing us really gets the deep-rooted issues we have faced since the 1990’s. I can see no real change coming, in fact, it will only benefit large pub companies who are unable to qualify for the current 40% discount. I wait with baited breath.”
Sticking plaster
Despite concerns, the report assured the move marked the first steps in the Government’s plans to transform the business rates system. More details are set to be released at the Budget on Wednesday 26 November.
Meanwhile owner of Top 50 Gastropub the Unruly Pig in Bromswell, Suffolk, Brendan Padfield, was encouraged by the positive news but said the support would not stack up against rising employment costs.
He told The MA: “At the risk of sounding ungrateful, this is, in reality, a small sticking plaster that doesn’t properly deal with the core problems of food inflation, heavy national minimum wage burdens and employers’ national insurance increases.
“The 2024 Budget has been a wrecking ball and now we are also facing the insidious hidden costs and burden of the Employment Rights bill, which will weigh heavily on small businesses particularly.”
