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Chancellor Rachel Reeves has confirmed that the government will announce extra support for pubs in England facing hikes in business rates as a result of changes in April.
Her comments follow a long term row over businesses rates including the reforms unveiled in last November’s Budget. A Covid-era discount for retail, leisure and hospitality firms will be removed, and rates will rise for many as a result of a revaluation of properties.
Press reports said at least a partial u-turn is on the cards with the government due to announce extra support for pubs. Reeves today confirmed it.
She told BBC Breakfast: “we are working very closely with the hospitality sector, particularly the pub industry, to get this right” and that “additional support” will be unveiled “in the next few days and weeks”.
‘We want to support our pubs’
Chancellor Rachel Reeves told #BBCBreakfast she is still working on planned changes to business rates, amid warning of significant rises for pubs and other hospitality businesseshttps://t.co/duG55o4mnt pic.twitter.com/ihqVu2b7ZQ
— BBC Breakfast (@BBCBreakfast) January 14, 2026
Groups representing pubs have welcomed the news that support is coming, but organisations representing the wider hospitality industry and the retail sector said the help should also cover other companies such as cafes, restaurants, hotels and shops. Asked by BBC Breakfast if it would, Reeves said:
“I think that people can see that the biggest impact and the biggest concern right now is around pubs. Some of the smallest businesses, particularly some cafes, don’t pay any business rates at all because they’re not big enough to do so.”
UKHospitality has warned that six hospitality venues could close every day in 2026 without a sector-wide solution to tackle business rates increases.
When the support is announced it will be the latest of several climbdowns on policy by the Labour government. Yesterday it announced its 13th u-turn by saying that the plan to introduce digital IDs will no longer be compulsory.
Earliest this week, business secretary Peter Kyle said the government did not have the “granular detail” about how individual firms would be impacted before the business rates changes were announced in November.
However, speaking to the Commons Treasury Committee on Tuesday, Jonathan Russell, chief executive of the Valuation Office Agency, said his organisation had communicated to ministers the impact on different sectors before the chancellor’s speech.
He said that 5,100 pubs, 13% of the total, have been hit with a 100% rise in their rateable value which is used to calculate their business rates bills.
