Rates U-turn for pubs is not enough, chancellor told

Rachel Reeves is facing a backlash from Labour MPs, pub landlords and business owners over the “wholly inadequate” 15 per cent cut in business rates bills.

- DAVID MADDOX

The support, which the Treasury has said is worth £1,650 for the average pub next year, came after warnings that a decision in the chancellor’s Budget to end the rate relief brought in during the Covid pandemic would lead to mass closures and job losses.

The anger prompted a national campaign led by TV presenter Jeremy Clarkson in which pubs barred Labour MPs from their premises.

The Independent first revealed that the government would U-turn on the plan to end the relief earlier this month, and the Treasury finally confirmed pubs and music venues would get 15 per cent off their business rates bills from April as part of a major support package.

However, hotels, restaurants and cafes will not receive additional support despite their own concerns over soaring tax bills.

The Independent has seen a letter from 50 Labour MPs, organised by Labour Knowsley MP Anneliese Midgley, a member of the culture select committee, warning that the change is not enough.

The letter, also signed by former minister Justin Madders, and leading Labour MPs Stella Creasy, Dan Carden, Sharon Hodgson, Alex Sobel, Kerry McCarthy, warns that music venues are still under threat.