Business leaders welcome climbdown but say it must extend to the whole hospitality sector

Business leaders in the West Midlands are today urging Chancellor Rachel Reeves to extend support beyond pubs as the government signals a U-turn on planned business rate increases.

The climbdown on how pubs’ business rates are calculated follows intense pressure from landlords and industry groups, including a campaign where more than 1,000 pubs banned Labour MPs from their premises.

However, as things currently stand, the relief will not extend to the wider hospitality industry or retail sector, prompting criticism from business organisations.

‘Hospitality firms across Greater Birmingham face an existential threat’

Emily Stubbs, head of policy at the Greater Birmingham Chambers of Commerce, said: “While a carve-out for pubs is very much welcomed, many hospitality firms across Greater Birmingham face an existential threat, whilst others are set to see substantial cost increases.”

She said government’s priority should be increased transitional relief to ease April rises, followed by comprehensive reforms such as annual revaluations and a single flat multiplier of 40p.

British Independent Retailers Association CEO, Andrew Goodacre, said: “Independent retailers are suffering the same pressures as pubs – significant increases in rateable values, low sales due to poor consumer confidence, and rising labour costs.

“Our business model is under real stress, and we also have to deal with online retail giants and low-value imports escaping duty.

“If there is a new deal for pubs, we want to see the same for independent retail.

“It would be an absolute scandal if community shops and hard-working shop owners are left to manage their own demise by this government.”