Chancellor Confirms Further Short-Term Business Rates Help For Pubs

Chancellor Rachel Reeves has confirmed that pubs are set to receive additional short-term financial support, following mounting concern across the sector over sharp increases in business rates due later this year.

Speaking after criticism of the Government’s Budget approach, Ms Reeves acknowledged that while pandemic-era relief for hospitality cannot remain in place indefinitely, the pace at which it is withdrawn must be carefully managed to avoid damaging viable businesses.

The expected rise in rates is being driven by the first full revaluation of commercial properties since Covid-19, combined with the phased removal of emergency discounts introduced during the pandemic. Although ministers have already committed £4.3bn to ease the transition, the Chancellor conceded that some pubs are still facing significant increases.

She confirmed that further measures are being actively developed, with more details expected to be announced over the coming days and weeks.

Speaking on BBC Breakfast, Ms Reeves said: “There are a number of things happening with business rates. We’ve had a revaluation for the first time since the pandemic, and there is also a gradual withdrawal of temporary Covid support.

“We’ve already put in £4.3bn of additional help to phase that transition, but we recognise that for some pubs the increases are still substantial. We’re working very intensively to make sure we get this right.”

The Chancellor sought to reassure publicans calling for urgent clarity, noting that the changes are not due to take effect for several months. However, she reiterated that continued blanket relief is not financially sustainable.

“Most people accept that now the pandemic is over, some of that temporary support does need to be unwound,” she said. “The key issue is the speed at which that happens.”

Ms Reeves also pointed to the Government’s wider fiscal position, arguing that maintaining emergency-level support indefinitely would undermine efforts to reduce borrowing, inflation and interest rates.

“It’s about finding the right balance,” she said. “We want to support pubs and high streets, but we also have to bring down borrowing.”

While industry bodies and opposition figures have urged the Treasury to extend further help to a broader range of struggling businesses, the Chancellor indicated that pubs remain the immediate priority.

She highlighted that many smaller hospitality operators, such as cafés, are not liable for business rates at all, while pubs have been particularly exposed due to forced closures during Covid and rising property valuations.

The confirmation follows reports last week that the Treasury was reconsidering elements of its Budget plans after raising concerns internally about the potential impact on the pub sector.

The move is the latest in a series of policy adjustments by Sir Keir Starmer’s Government, following a recent shift away from mandatory digital ID requirements. Ms Reeves played down suggestions of repeated U-turns, saying the focus is on practical outcomes rather than rigid policy positions.

“For most people, what matters is that the system works,” she said. “Whether that’s one form of digital ID or a range of verified digital documents isn’t the real issue.”

For the licensed trade, attention will now turn to the detail of the promised support package and whether it will be sufficient to protect pubs already under pressure from rising costs and fragile consumer confidence.