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U-turn over business rates hike for pubs expected in coming days, Sky News understands | Politics News

The Owner Press by The Owner Press
January 8, 2026
in Newswire
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A bundle for pubs which might assist with enterprise charges is coming within the subsequent few days, Sky Information understands.

It comes after Home of Commons chief Sir Alan Campbell addressed backbench issues over the hospitality sector, which is dealing with the tip of COVID-era assist and a hike in enterprise charges following Rachel Reeves’ November finances.

He mentioned: “The prime minister has been completely clear on this, [we are] listening and that he is actively, we’re actively taking a look at, additional measures, to assist pubs and the hospitality business, whether or not these are in rural areas or in, city areas.”

Sky’s deputy political editor Sam Coates has now heard {that a} rescue bundle that might assist with that is coming within the subsequent few days – however just for pubs.

The climbdown features a change to the methodology of the enterprise charges calculation, plus “regulatory measures”, it’s understood.

This leaves others, like lodges, probably uncovered to the uplifts.

A supply representing the broader hospitality business mentioned the climbdown “just isn’t touching the perimeters” .

Conservative chief Kemi Badenoch, who has vowed to scrap enterprise charges fully, mentioned the U-turn was “too little too late”.

She posted on X: “Yesterday Keir Starmer informed us Labour had ‘turned a nook.’ Properly, it appears to be like like they’ve turned the nook straight into their first u-turn of 2026. Labour are killing Britain’s pubs. This rumoured u-turn is just too little too late. It is time to again our native pubs.”

Emma McClarkin, CEO of the British Beer & Pub Affiliation, mentioned information of a row again “is probably an enormous win for pubs throughout the nation and exhibits authorities haven’t solely listened to our issues however acted”.

She added: “This might save locals, jobs, and means publicans can breathe an enormous sigh of reduction.”

Quite a lot of components imply hospitality venues might probably see their payments rise by greater than 100%, Sam informed Anne in Thursday morning’s Politics at Sam and Anne’s.

Each pubs and lodges are additionally trying down the barrel of massive business rate hikes.


Why are pubs banning Labour MPs?

On the podcast this morning, Sam mentioned just a few hours after Wednesday’s Prime Minister’s Questions – the place the subject got here up – he picked up rumours within the business that some form of announcement may very well be coming that may assist pubs, however not lodges.

He mentioned this may very well be as a result of pubs are “extra politically delicate”.

Sam added: “However speaking to lots of people, for those who do a one-off grant, then that is costly and does not make the final word drawback – which bites in three years’ time, go away.

“And lodges are amongst the worst affected and get the most important enhance in enterprise charges in three years’ time – so there’s nonetheless massive points there.

“However the politics and the economics of rolling over the treasury on this are simply so onerous – and to my ear, a few days in the past, they gave the impression of they beautiful a lot needed to stay and had been being fairly cussed.”

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👉Listen to Politics at Sam and Anne’s on your podcast app👈

In November’s finances, Chancellor Rachel Reeves introduced modifications to how enterprise charges are calculated, with a brand new band for retail, hospitality and leisure – bringing an finish to the reduction scheme first launched in 2020 throughout the pandemic.

The sector argues that the brand new enterprise charges, whereas decrease than earlier than COVID, don’t go far sufficient.

They are saying that as a result of the tax is predicated on rateable property values, which is an official estimate of a business property’s annual rental worth, they’re disproportionately affected as a result of they’ve bodily shops, eating places and pubs – in contrast to on-line giants.

Learn extra from Sky Information:
MPs would vote on troops deployment to Ukraine
The MP who tabled 342 questions in a single day

A number of pubs have already barred Labour MPs in protest on the modifications.

As Sky Information beforehand reported, a cabinet revolt is brewing over the matter.

Nevertheless, Sky Information understands the federal government has been warning companies to not protest over the modifications in the event that they need to get any concessions.



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