Chancellor urged to extend rates relief after U-turn on pubs

Business leaders in Greater Birmingham today called on the Chancellor to do more to address the “broken” business rates system after announcing a U-turn on rate increases for pubs.

A climbdown on increases to the business rates bills faced by pubs in England is set to be announced in the coming days.

The government is expected to say it will make changes to how pubs' business rates are calculated, resulting in smaller rises to bills.

The move follows pressure from landlords and industry groups that included more than 1,000 pubs banning Labour MPs from their premises.

However, the changes do not apply to the rest of the hospitality industry and Greater Birmingham Chambers of Commerce warned that many hospitality firms are facing “an existential threat.”

Emily Stubbs (pictured), head of policy at the GBCC, said: “The Chancellor acknowledged in the Autumn Budget that the business rates system is broken and constraining growth, but the measures she announced risk leaving some sectors over‑exposed.

“While a carve‑out for pubs is very much welcomed, many hospitality firms across Greater Birmingham face an existential threat, whilst others are set to see substantial cost increases.

“Our latest Quarterly Business Report reflects the already-acute cost pressures and cashflow squeezes impacting local businesses, constraining employment, investment and economic growth.

“The government's immediate priority must be a meaningful uplift in transitional relief to soften the sharp rises in April.

“Following this, the Chancellor must deliver the root‑and‑branch reform promised in the Labour Party's election manifesto, including annual revaluations to avoid steep bill jumps and a single flat multiplier of 40p to improve transparency and fairness.

“These changes would allow for much greater transparency, simplicity and fairness than the current system.”

The British Independent Retailers Association (Bira) has also voiced its concern that independent retailers are being excluded.

CEO Andrew Goodacre said: “Independent retailers are suffering the same pressures as pubs - significant increases in rateable values, low sales due to poor consumer confidence, and rising labour costs.

“Our business model is under real stress, and we also have to deal with online retail giants and low-value imports escaping duty.

“If there is a new deal for pubs, we want to see the same for independent retail.

“It would be an absolute scandal if community shops and hard-working shop owners are left to manage their own demise by this government.”