Chancellor Rachel Reeves is set to announce a £100 million annual support package for pubs amid widespread criticism over business rate changes. Meanwhile, nearly 50 Labour MPs have urged her to halt a planned increase in business rates for music venues, warning of an "existential threat" to the sector.
Immediate Action & Core Facts
The Treasury is finalizing a £100m-a-year support package for pubs, expected to be announced on Tuesday, following backlash over business rate reforms. The move comes as pubs face rising costs, with one closing per day in England and Wales last year.
Separately, Labour MPs have written to Reeves demanding a halt to the April business rate increase for music venues, citing potential bill hikes of 45% to 275%. The letter, coordinated by Liverpool MP Anneliese Dodds, also calls for support for recording studios, claiming half are under threat.
Deeper Dive & Context
Pubs Under Financial Pressure
Pubs have faced mounting financial strain from higher employer national insurance contributions, minimum wage rises, energy costs, and inflation. The government has also moved to reform pub licensing rules, including extended hours, but has ruled out reducing VAT on alcohol.
In November, Reeves scaled back business rate discounts from 75% to 40% and announced no discount from April. The £4.3bn support package in the budget was intended to offset the end of Covid-era relief, but critics argue it falls short.
Wider Hospitality Sector Concerns
While the support package focuses on pubs, Labour MPs and opposition politicians have pressed for broader relief, including for hotels and live music venues. The letter to Reeves highlights constituent concerns over the impact of the 2026 business rates revaluation.
Around 1,000 pubs have banned Labour politicians in protest at rising costs, including the withdrawal of Covid-era support. The Treasury has been approached for comment on the music venue relief request.
Government Response
Reeves has acknowledged the "particular challenge" faced by pubs but has not extended support to other hospitality sectors. She stated at the World Economic Forum that pubs' struggles differ from those of other sectors.
The government has not yet responded to calls for music venue relief, but the Treasury is reviewing the situation. The final details of the pub support package were still being finalized as of Monday night.