Reports of a Government U-turn were first published at the beginning of 2026 (Thursday 8 January), which the British Beer & Pub Association described as “potentially a huge win for pubs”.
In response at the time, the Campaign for Real Ale (CAMRA) chairman Ash Corbett-Collins called for the Government to end the uncertainty and support pubs with permanently lower bills, as promised in Labour’s manifesto in the run-up to the general election in 2024 - the party committed to reforming business rates in a bid to support high street businesses.
Whole-sector solution
Trade body UKHospitality (UKH) asked for help for the whole trade. Chief executive Allen Simpson said: “Something just for pubs isn’t enough when restaurants are also hammered and hotels worst of all,” while chair Kate Nicholls outlined how the whole hospitality industry is impacted by the business rates hike.
She said: “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.”
This was followed by figures from UKH, which found more than 2,000 hospitality venues could close in 2026 without a sector-wide solution to business rates before April’s revaluation, including 963 restaurants, 574 hotels and 540 pubs.
Opposition asks
During last week’s Prime Minister’s Questions Conservative party leader Kemi Badenoch pressed Prime Minister Keir Starmer for clarity on changes to rates for hospitality.
Starmer said the Government was working with the sector to ensure businesses received the support they needed, repeating Chancellor Rachel Reeves’ comments to the BBC.
He added that Labour’s economic policies had delivered lower inflation, reduced interest rates and higher wages, allowing working people to “go out and spend money in pubs”.
Despite all this, no further information or detail has been announced regarding business rates reform and the Treasury has yet to comment further, however The Morning Advertiser understands there will be a support package for pubs revealed in the coming days.
