The leader of the Conservative Party, Kemi Badenoch, has made a major pledge to abolish business rates entirely for thousands of pubs across Britain, launching a fierce attack on the Government for treating the hospitality sector as a "cash cow to milk".
A Tory Pledge Funded by Proposed Savings
In a detailed article for the Telegraph, Mrs Badenoch set out her party's plan, which she claims would be financed by identifying billions of pounds in savings elsewhere. The proposed savings would come from areas such as reducing the welfare bill and shrinking the size of the Civil Service.
This policy promise comes as a direct challenge to the Labour government's approach. Chancellor Rachel Reeves confirmed in the November budget that the Covid-era business rates relief for retail, hospitality, and leisure sectors will conclude in April. This relief had already been tapered down from 75% to 40%.
Perfect Storm of Rising Costs for Pubs
The end of relief coincides with a nationwide revaluation of business properties, which will introduce new rateable values from April to reflect changes in the property market. For many pubs, this means a significant hike in their bills.
Highlighting this pressure, Labour MP Rachael Maskell (York Central) confronted the Prime Minister at PMQs, warning that businesses in her constituency face closure. She cited examples including an average 41% rise for hospitality, a 44.4% increase for a music venue, and around 27% for independent shops.
In response, Sir Keir Starmer acknowledged the end of Covid support but pointed to interim relief and ongoing talks with the sector.
Government Hints at Further Support Amid Backlash
Amid growing signs of a Labour backbench row and industry anger, a senior minister has hinted that more help for pubs could be on the way. Pat McFadden, a key ally of the Prime Minister, emphasised the government's appreciation for the cultural and economic role of pubs.
He explained to BBC Radio 4's Today programme that three factors are converging: reduced rates levels, a revaluation pushing bills up, and the withdrawal of Covid support. The government has already implemented a £4.3 billion transitional relief fund to mitigate the "very steep increase".
However, Mr McFadden admitted that the industry has said this is insufficient. "We appreciate how important the pub industry is... we'll keep talking to the pub industry. We really value the role of the pub in British life," he stated, though he stopped short of confirming a U-turn on withdrawing the tax breaks.
The political battle lines are now clearly drawn, with the Conservatives seizing an opportunity to position themselves as the champions of a cherished British institution, while the Labour government faces pressure from its own MPs and the industry to offer more substantial support.
