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The government has unveiled £300 million in extra support on business rates for pubs in England, after weeks of criticism that changes announced in the Autumn Budget last year will lead to company closures.
The government has been forced to act because a Covid-era discount for retail, leisure and hospitality firms is being removed and properties are being revalued, which will lead to significant increases in business rates for many firms.
In the Budget Reeves announced a £4.3bn support package including rates relief but that’s not enough to offset the big rise in bills.
Speaking in the House of Commons on Tuesday, Dan Tomlinson, exchequer secretary to the Treasury, said it will carry out a review of the pub revaluation methodology.
While the review takes place, the government will provide support for pubs and music venues for the next three years. Pubs and music venues will get 15% off their business rates bills, then bills will be frozen in real terms for a further two years.
Tomlinson said this is worth £1,650 for the average pub next yeer with around three quarters of pubs seeing their bills either fall or stay the same.
Business groups have called for the support to cover a wider range of businesses but today’s announcement only applies to pubs. Tomlinson did however say the government will review how hotels are valued and announced that a high street strategy will be launched later in the year to cover how all high street businesses can be supported.
Other changes announced today are allowing pubs and other licensed venues to open after midnight for Home Nations’ games in the later stages of this summer’s Men’s FIFA World Cup. The government will consult on allowing them to open late for other big events such as Eurovision.
The chancellor also announced £10 million of funding for the Hospitality Support Fund over three years, up from £1.5 million for one year announced last April, to help pubs provide extra services for local communities, including creating community cafes, village stores and play areas.
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