8th Jan 2026 13:56
(Alliance News) - Ministers are to U-turn on increasing business rates for UK pubs in the face of mounting pressure from landlords and backbench MPs, the Press Association understands.
Pubs have been facing the prospect of much higher business rates after the chancellor announced plans to end Covid-era discounts at her budget in November.
The government had put in place a GBP4.3 billion fund to help pubs with the transition to higher rates, but PA understands more assistance will now be made available after an outcry from the industry.
Sources said the Treasury would bring forward a package of support in the coming days, likely to include business rates relief and measures to cut licensing red tape.
On Thursday, Cabinet Minister Pat McFadden said his colleagues had been "talking to the pub industry" about its worries and appreciated "how important the pub industry is economically and culturally to the UK".
While he would not confirm that a U-turn was on the way, he added: "We really value the role of the pub in British life. We want to help pubs."
Responding to reports that the government was preparing a climbdown, Liberal Democrat Treasury spokeswoman Daisy Cooper called for ministers to take action "today".
She said: "These businesses are worried sick, making decisions now, and can't wait a minute longer.
"Ministers must give them the clarity they so desperately need so businesses don't go to the wall, hollowing our communities, in the coming days."
By Christopher McKeon and David Lynch, Press Association Political Staff
source: PA
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