U-turn on pubs has not solved the government's mess on business rates | Nils Pratley

Chancellor's Pub Relief Won't Quell Business Rate Storm

A temporary reprieve for pubs in the shape of a 15% discount and two-year freeze may have calmed some nerves, but it won't silence the growing chorus of discontent from the hospitality sector. The move comes just as businesses were bracing themselves for crippling increases in rates that could ultimately spell disaster.

Business rates are now poised to become an ever-more significant burden on cash-strapped pubs, restaurants and hotels, as the sector grapples with inflationary pressures and rising costs. A further 115% increase is predicted for some hotels in England over the next three years, leaving many fearing closure and job losses.

The decision not to extend the relief package beyond pubs and live music venues highlights a fundamental flaw in government policy. The hospitality sector accounts for six out of seven of the 3.5 million jobs created by business rates and yet was left high-and-dry. It's a stark reminder that the government appears only interested in certain "high-growth" sectors while ignoring the concerns of others.

Critics argue that the Treasury failed to anticipate the industry's outrage, possibly due to inadequate modelling of sector-specific impacts. The Chancellor had previously boasted about reducing business rates but overshadowed this claim with an acknowledgment that rateable values had increased significantly during the pandemic.

The bigger issue lies in the lack of fundamental reform promised by Labour during their election campaign. While tweaks were offered for smaller premises, no switch to a fairer system was forthcoming. This raises questions over whether the government has genuinely learned from its mistakes or merely patched up the existing framework.

One thing is certain: this saga will only intensify as businesses struggle with rising costs and stagnant government policies. To avoid further embarrassment, the Chancellor should model sector-by-sector impacts with greater precision and deliver on their promises – not just a series of token gestures that offer temporary relief but little more.

man I feel so bad for these pubs they're already struggling to stay afloat and now this new business rate hike is gonna be like the final nail in the coffin it's crazy how the gov't isn't taking into account all the other jobs that rely on these businesses you know, there's gotta be some way to make things more fair for everyone involved

I'm still scratching my head over this one... 15% discount? Two years freeze? That's like throwing your grandma a pity party. Don't get me wrong, pubs and hotels need a break, but what about the long-term damage? The government's all like "oh, we're saving the industry"... nope! They're just kicking it down the road.

And that whole 115% increase for some hotels in England? It's like they're saying "good luck with that". I mean, what even is a 'fairer system'? Is it too much to ask for some actual change here? The Labour guys had some sweet promises during the election, but now they're MIA.

I'm all about nostalgic vibes, but sometimes I feel like we're stuck in this time loop of the same old problems . Business rates are still a total nightmare, and it's only gonna get worse if the government doesn't step up their game .

Ugh, pubs are really struggling right now . I mean, I get it, business rates are always gonna be a thing, but the government needs to step up and help out these small businesses more! They're not just a bunch of fancy restaurants or hotels, they're community hubs too. People go there for events, birthdays, and just to hang out with friends. It's like, what about the people who rely on these places for their livelihood? The 15% discount is nice, but it's not gonna cut it. We need real change here! And what's up with this "one size fits all" approach? Some businesses are already struggling to stay afloat...this temporary reprieve won't last forever #PubProblems #BusinessRates #SmallBusinessSupport

idk why gov is being so harsh on pubs they're already struggling to make ends meet, and now this 15% discount doesn't even come close to covering the rising costs... i feel for all those small pub owners trying to keep their businesses afloat it's like they're getting hit from both sides - increased rates + stagnant wages. can't gov just take another look at the policy & make some real changes instead of just slapping on a Band-Aid?

I'm worried about our local pubs they're already struggling to make ends meet and now this new business rate increase is gonna be a nightmare I mean, a 115% hike in three years? That's just too much for some of them to handle I wish the government would take a closer look at their policies and figure out how to help small businesses like pubs and restaurants instead of just giving temporary discounts

I also think they should've anticipated the industry's outrage I mean, it's not like it's a new thing for them to worry about business rates The Chancellor should be more transparent about their planning and make sure they're considering all the impacts on different sectors Not just patching up old problems with quick fixes

Ugh, what's up with these business rate increases?! It's like they're trying to strangle the pub industry for good. I mean, a 15% discount and a two-year freeze are nice gestures, but it's not enough to save them from disaster. The fact that hotels in England will see a massive 115% increase is just ridiculous. And what really gets me is that pubs are basically held hostage by these rates. It's like the government is saying 'oh, we'll help you out, but only if you're a certain type of business'. That's not right! The hospitality sector needs real reform, not just some token fixes. We need to see some actual changes, not just a bunch of PR spin. Come on, Chancellor, step up your game!

omg u can feel the frustration emanating from the hospitality industry like they're already dealing with so much drama what's next? a rise in rent for bars and clubs too?? i mean the gov should at least consider their plight, 6 out of 7 jobs created by business rates is crazy, it's not like pubs r gonna magically make more money if they pay less in rates anyway, labour was supposed to bring some real change but now its all just a bunch of lip service lol

omg, cant believe gov is still ignoring pubs they need more than just 15% discount & 2 yr freeze... business rates r still gonna kill them especially with inflation & rising costs think gov should take a closer look at their policy & make some real changes no more token gestures, pls

Ugh, I'm so done with this pub relief drama . The gov's all like "Oh no, pubs will be okay" but really they're just stringing them along. 15% discount and a two-year freeze? That's cute, but the real problem is the looming 115% increase in rates for hotels... it's like they're setting them up for disaster . I mean, come on, gov! You can't just ignore the concerns of businesses that are already struggling to stay afloat. Labour promised more fundamental reform and now it seems like we're stuck with more of the same . The Chancellor needs to get their act together and actually deliver on those promises, not just give us token gestures .