Treasury unveils £80m package to support pubs and music venues hit by rates rise

The Treasury yesterday unveiled support worth more than £80m a year for pubs and live music venues in England after a backlash against plans to overhaul business rates.

- Rob Davies Mark Sweney Tom Knowles

Trade bodies had said that changes announced by the chancellor, Rachel Reeves, in her November budget would trigger widespread closures and job losses in the hospitality sector, particularly in pubs.

The government said the support package would mitigate the effect of the rates shakeup. Officials had admitted that they did not foresee its total financial impact.

The package is expected to be worth more than £80m a year, over three years, for pubs and gig venues.

It will apply only to England but the government said extra funding would be freed up for Scotland and Wales to follow suit.

While some in the pub industry gave the U-turn a cautious welcome, several trade bodies warned the measures did not go far enough or should have included other under-pressure businesses such as hotels and retailers.

A group of publicans who have barred Labour MPs including Reeves from their premises said relief on rates was not enough to convince them to serve her a pint.