Pressure Mounts on Prime Minister to Rethink Damaging Tax Hikes
Pressure is mounting on Prime Minister Sir Keir Starmer to rethink proposed changes to business rates to protect pubs and other hospitality businesses.
The pub industry is warning of widespread closures when Covid-era business rate relief comes to an end in April.
CAMRA, the Campaign for Real Ale, is calling on the Prime Minister to urgently announce a rethink following a cabinet revolt on the issue, which was a key theme of Prime Minister’s Questions.
CAMRA – which represents over 140,000 consumers and has been campaigning for pubs, pints and people since 1971 – said pubgoers were demanding action from the Government and the Valuation Office Agency to avoid thousands of extra pub closures in 2026.
CAMRA Chairman Ash Corbett-Collins said: “Instead of months of uncertainty and the prospect of thousands of otherwise viable pubs having to close their doors for good, the Prime Minister and Chancellor should give in to pressure, accept the inevitable and announce a rethink now.
“Whether through cock-up or conspiracy the Government’s promise of permanently lower business rates for pubs hasn’t happened. Instead, publicans are facing higher bills from April, which they simply can’t afford.
“Pubs are a force for good in communities across the country, bringing people together and helping to tackle loneliness. But they can only survive if ministers think again about these business rates increases and come up with a plan that will save our locals.”
At Prime Minister’s Questions, Rachael Maskell, the Labour MP for York Central, called on Sir Keir to urgently review the proposals to help “avert a crisis” on the High Street.
The PM said the government was in talks with the industry to see what “what further support and action we can take”.
Ms Maskell said: “Having met with many independent business owners, they fear the cumulative impact of the rateable value revision and relief reductions.
“In York, hospitality sees an average business rate rise of 41%, a music venue 44.4% and many independent shops increase around 27%.
“It will mean doors closing and trade ceasing, they just can’t do it.
“So could the prime minister urgently review the business rate proposals, and will he ensure a minister or official attends my business rate summit at the end of January, as I want to avert a crisis on York’s High Street.”
In his reply the Prime Minister said talks were ongoing with the hospitality industry, without providing details about what measures were being discussed.
The PM’s spokesman also refused to give a “running commentary” and said the hospitality industry had been given a £4.3bn support package over three years in the Budget.
Speaking in the Telegraph today Conservative leader Kemi Badenoch has launched a “blueprint” to save Britains pubs, promising to slash energy costs she said: “Like so many of Britain’s small businesses, pubs are being treated by Labour as cash cows to milk instead of places to protect. Just another group of people to squeeze to fund their pet projects and handouts”.