Speaking to the BBC yesterday (14 January), Reeves said she was “working with the hospitality sector” and did not rule out extending relief to businesses beyond pubs.
Treasury officials echoed the position, telling the BBC that while a package for pubs would be announced “in the coming days”, additional support for the wider sector had not been ruled out.
Change of stance
Earlier in the day Reeves had hinted to BBC Breakfast that she was resisting calls for more support for the rest of the hospitality sector and link.
In the earlier interview, Reeves emphasised that pubs were the government’s “particular concern” and suggested support would be targeted rather than sector wide.
During the BBC Breakfast appearance, Reeves said the Treasury was working “pretty intensely” to ensure pubs receive additional help, amid reports of steep rises to come in April when Covid era relief ends and revalued rateable values take effect.
She acknowledged some pubs were facing a “big increase” in their bills and pointed to the £4.3bn already allocated for transitional relief. However, she stressed that unwinding temporary pandemic support was unavoidable.
Reeves was shown the example of The Plough Inn in Snaith, East Yorkshire, whose owners announced closure due to “increasing and crippling” rate rises and difficult festive trading.
‘Still got time’
“It is always sad when a business closes, especially a much loved local business. But the business rates haven’t come in yet,” she said. “We’re trying to find a solution. These changes are coming in in April, so we’ve still got time to make sure there is additional support coming.”
On the earlier interview, she said: “I think people can see that the biggest impact and the biggest concern right now is around pubs. Some of the smallest businesses, particularly some cafes, don’t pay any business rates at all because they’re not big enough to do so. That is right, that we support our smallest businesses in that way.
“We are particularly concerned around pubs. Obviously, pubs were very badly affected during the pandemic when they were just closed. That wasn’t the same for all other parts of the economy, and that’s why pubs have seen a particular increase in their valuations.”
Government officials have since confirmed to the Financial Times that Reeves is considering broadening the package to the wider hospitality sector, with details expected in the coming days.
