U-turn on pubs has not solved the government’s mess on business rates

2026-01-27 - 18:10

The package being offered is not insignificant, but the hospitality sector is still in trouble Will the chancellor’s inevitable U-turn on business rates for pubs be enough to quieten the developing riot behind the taps? Possibly – a bit. After two months of damaging headlines, Rachel Reeves has granted pubs a 15% discount on bills, worth £1,650 on average in the next tax year, then a two-year freeze in real terms, with the promise of a change in methodology in time for the next revaluation in 2029. Live music venues get the same deal. The package is not insignificant, especially as it was the year-three escalation in bills that was causing the most angst. Yet it would be a mistake to think the government’s troubles on business rates end there. First, and most significantly, the rest of the hospitality industry got nothing extra in Tuesday’s announcement beyond a similar pledge to rethink valuation methods for hotels in future. Continue reading...