Sector sources told The Telegraph that the Treasury is preparing a temporary intervention that could include a more generous cap on rising rates bills.
The Government is expected to confirm details tomorrow, alongside planned licensing relaxations for this summer’s football World Cup.
New relief
Reeves signalled earlier this month that new relief will be directed at pubs rather than the wider hospitality sector, despite repeated warnings from operators that rate increases due in April will put thousands of venues at risk.
Covid era relief will fall from 40% to zero and revalued properties will see rateable values climb sharply.
Industry leaders have been pressing for a 20p discount applied to the business rates multiplier for all hospitality properties. The Treasury currently proposes 5p for pubs only.
Inadequate support
One source close to the discussions said anything less than sector wide support would be inadequate. They added that changing the multiplier now is unlikely because it would require replacement of existing secondary legislation.
“Any package of support needs to be substantive, sector wide and cover the full revaluation period,” they said. “Anything less places jobs at risk and increases the likelihood of failures.”
Another source said a pubs only intervention would be “too narrow and too shallow”, warning it would not reverse the damage already felt across the market.
Labour MPs have also urged the Chancellor to go further. Tonia Antoniazzi, chair of the All Party Parliamentary Beer Group, said: “Pubs already operate on slim margins. If we release the burden of tax it will give them a chance to survive and grow.”
Operators continue to report mounting pressures from employer tax, minimum wage hikes, energy costs and rising duties.
UKHospitality has forecast that the average pub’s business rates bill will rise by 76% over the next three years without intervention.
