Government's pub-only business rates package is "poor decision based on politics", Bira says

The government's decision to give pubs a 15% business rates discount while excluding independent retailers is a "poor decision based on politics rather than what is good for the local economy", an independent retailers association has said.

Treasury Minister Dan Tomlinson announced that pubs and music venues in England will receive a 15% discount on their business rates bills from April and will not see increases for two years. The three-year package is worth £1,650 for the average pub.

Andrew Goodacre, CEO of Bira, said the Chancellor had failed to listen to independent retailers who face identical pressures.

Mr Goodacre said promises of yet another high streets strategy were "empty words" for the thousands of independent retailers facing sharp rises in their rates bills over the next three years.

"The Treasury states that pubs need support having lost 7,000 since 2010," said Mr Goodacre. "We have lost 17,000 independent shops in 2024 and are expecting a similar number when the figures are announced for 2025."

The CEO described the package as "yet another half-baked u-turn" that benefits pubs whilst small retailers are "being flushed down the u-bend".

"The Chancellor talks about delivering thriving high streets and permanently lower multipliers," added Mr Goodacre. "This is despite the harsh reality of 87% vacancy rates, shops closing every day, illicit shops prospering, rampant retail crime and business rates at the highest levels since 2019."

Mr Goodacre highlighted that the Chancellor is reducing business rates support from £2.5bn in 2024 to £900m in 2026, despite Labour's manifesto promise to create a fairer system for high street businesses.

"Obviously this only applies if that business is a pub," said Mr Goodacre. "The real shocking fact the Chancellor never mentions is that based on OBR forecasts, the government will increase income from business rates by £10bn or 30% by 2030/31."

The CEO accused the government of using business rates as a "cash cow instead of taking the opportunity to reduce the multipliers for everyone".

The government announcement comes after a backlash against November's Budget, which left many businesses facing major increases in their business rates bills. Earlier this month, Chancellor Rachel Reeves said she was "particularly concerned" about the impact pubs faced and hinted there would be "additional support".

The package will cost £80m in its first year, according to the government.

UK Hospitality has warned that hotels, restaurants and other businesses in the sector are also at risk, calling for the support package to be widened.

Image credit: Drobot Dean/stock.adobe.com