During today’s (Wednesday 7 January) Prime Minister’s Questions (PMQs), the subject of business rates was raised by two MPs.
This comes after pub operators reacted to Starmer’s suggestion the Government could offer “further support” to hospitality businesses facing sharp increases in their rates.
During the most recent PMQs, Labour MP for York Central Rachael Maskell called on the Prime Minister to join a summit she is hosting around the issue and for him to review the rates proposals.
She said: “Having met with many independent business owners, they fear the cumulative impact of the rateable value revision and relief reductions.
“In York, hospitality sees an average business rates rise of 41%, a music venue 44.4% and many independent shops [are seeing] increases of around 27%.
“It will mean doors closing and trade ceasing, they just can’t do it. Could the Prime Minister urgently review the business rates proposals and will he ensure a minister or official attends my business rates summit at the end of January as I want to avert a crisis on York’s high street?”
Starmer responded by claiming the Government was working with the industry around support.
Appalling economic policies
He said: “During Covid, the rates went down and that [reduction] was coming to an end [so] that’s why we put interim relief [in place] as we move to the new rates.
“We are continuing to work with and talk to the sector on that support and what further support and action we can take.”
Conservative MP for Mid Leicestershire Peter Bedford asked a question around the effect of business rates hikes on hospitality.
He said: “Unlike many of his parliamentary colleagues, I don’t actually think the Prime Minister should resign.
“But, for the start of a new year, it’s time to reflect, reset, detox if you will, on his Government’s appalling economic policies and tax rises, particularly business rates and the impact it is having on the hospitality sector.
“Will the Prime Minister commit to doing that today?”
In his reply, Starmer pointed to recent inflation figures and voiced criticisms of the former Government.
Rethink needed
“I’ll reflect on the fact inflation is falling, the Bank of England says it is going to be down to target,” the Prime Minister added.
“I’ll reflect on the fact we’ve had six interest rate cuts in a row, [for] those with mortgages, [this] would be hugely effective.
“I’ll reflect on the fact the IMF say we’re going to have the second highest growth in 2025 and I’d remind them that under them [the previous Government], we had inflation at 11%, the worst parliament on living standards on record and the leader of the opposition thinks Liz Truss was 100% right to crash the economy.
“They’re literally the only people who think anybody should be listening to them – nobody is.”
Moreover, the Campaign for Real Ale (CAMRA) called for a rethink on business rates hikes, following today’s PMQs.
The organisation’s chairman Ash Corbett-Collins described pubs as a “force for good across the country” and urged the Government to save them.
He said: “Instead of months of uncertainty and the prospect of thousands of otherwise viable pubs having to close their doors for good, the Prime Minister and Chancellor should give in to pressure, accept the inevitable and announce a rethink now.
“Whether through cock-up or conspiracy the Government’s promise of permanently lower business rates for pubs hasn’t happened. Instead, publicans are facing higher bills from April, which they simply can’t afford.
“Pubs are a force for good in communities across the country, bringing people together and helping to tackle loneliness. But they can only survive if ministers think again about these business rates increases and come up with a plan that will save our locals.”
