Conservatives Pledge Business Rates Abolition for High Street Pubs and Shops
The Conservative Party has pledged to eliminate business rates for high street pubs and retail premises should it secure victory at the next general election.
Shadow Chancellor Sir Mel Stride unveiled the proposal during his address to the Conservative Party Conference on Monday, positioning the measure as central to what he characterised as a comprehensive economic recovery programme.
Speaking to conference delegates, Sir Mel criticised the current government’s approach to business taxation, claiming many operators had experienced a doubling of their business rates liabilities under Labour administration.
The senior opposition figure argued that rate reduction alone would prove insufficient, advocating for complete abolition of the levy for high street-based licensed and retail premises.
“Today I can announce that as a direct result of getting public spending under control, a future Conservative government will completely abolish business rates for shops and pubs on our high streets,” Sir Mel stated, adding emphatic confirmation that the tax would be entirely removed.
The announcement formed part of broader fiscal proposals that included £47 billion in public expenditure reductions, as the party seeks to revitalise its electoral prospects amid challenging polling data. Recent surveys have indicated the Conservatives ranking as low as fourth position in voter intention figures.
The former cabinet minister maintained that recovery remained achievable, emphasising the necessity of presenting ambitious policy platforms to recapture public support.
For the licensed trade sector, the commitment represents a significant potential shift in operational costs, with business rates constituting one of the largest fixed overheads for pub operators. Industry bodies have consistently lobbied for reform of the rating system, arguing the current structure places disproportionate burden on hospitality businesses with physical premises.
A recent survey of hospitality businesses conducted by industry body UKHospitality showed that:
- 1/3 are now operating at a loss
- 76% have had to increase prices
- 63% have reduced the hours available to staff
- 1/3 of businesses are restricting opening hours
- 4 in 10 have reduced investmen