Summary
The UK Chancellor, Rachel Reeves, expressed concern about increasing business rates for pubs and announced upcoming support to mitigate their impact. While the aid targets pubs specifically, other hospitality businesses want similar assistance as they face rising rates with the end of COVID-19 relief. The government plans changes to ease rate increases for pubs but is not extending equivalent support to all sectors.
Key Facts
- The Chancellor is focused on helping pubs with rising business rates.
- Pubs have been significantly affected by rate revaluations, with average increases of 32%.
- Current COVID-19 rate relief will end in April, leading to higher tax obligations for businesses.
- The government has a £4.3 billion fund to help businesses as relief phases out.
- Other hospitality sectors, like cafes and hotels, are also struggling but may not receive the same support as pubs.
- Business rates are calculated based on the property's rateable value, which is reassessed every five years.
- Significant rate increases are expected across various businesses, with hotels facing potential rises as high as 115%.
