The UK Treasury has confirmed an extension of business rates relief for pubs and breweries, providing much-needed financial support to the struggling hospitality sector. The move comes as venues across England and Wales grapple with rising energy bills, supply chain disruptions, and inflationary pressures.
What’s Changing?
The government’s decision extends the 75% discount on business rates for eligible hospitality businesses, capping relief at £110,000 per business. This follows sustained lobbying from industry groups, including the British Beer and Pub Association (BBPA), which warned that thousands of establishments risked closure without further support.
Why Does It Matter?
Pubs and breweries have faced mounting challenges in recent years, from pandemic-related closures to escalating operational costs. The BBPA estimates that the extended relief could save the sector over £500 million, helping to safeguard jobs and keep local communities thriving.
Industry Reaction
Emma McClarkin, Chief Executive of the BBPA, welcomed the announcement, stating: "This relief is a lifeline for pubs and breweries across the country. The government has listened to our concerns, and this decision will help many businesses stay afloat during these tough times."
The Bigger Picture
While the extension offers short-term relief, industry leaders continue to call for long-term reforms to business rates, arguing that the current system disproportionately burdens smaller hospitality businesses. The Treasury has indicated that further reviews of the business rates system are expected in the coming months.
