𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Rachel Reeves has been accused of gaslighting the British public with misleading claims regarding her tax raid on pubs, as the Government prepares a partial U-turn on business rates following a fierce and sustained backlash from the hospitality sector. In her November Budget, Chancellor Ms Reeves insisted that more than 750,000 retail, hospitality, and leisure properties would enjoy the lowest business rates since 1991. She specifically highlighted a reduction in the small business multiplier to 38.2% for the 2026–27 financial year.

She presented the move as a significant and necessary relief package for struggling pubs and embattled high streets nationwide. However, Conservative critics have condemned the statement as being wildly misleading. While the multiplier has technically fallen, they argue that the overall tax burden has soared because rateable values—the property valuations used to calculate final bills—have risen sharply following a recent revaluation process.

The Office for Budget Responsibility forecasts that business rates receipts will climb by a staggering £10 billion by 2031, reaching record levels that many businesses find unsustainable.

Shadow Communities Secretary Sir James Cleverly and Shadow Business Secretary Andrew Griffith have written a formal letter to the Office for Statistics Regulation, accusing the Chancellor of a “misuse of statistics” and of “gaslighting” hard-hit businesses.

They claim the Government deliberately highlighted only the lower multiplier to obscure the true, punishing impact of higher property valuations on the bottom line of small firms.

This story was first reported in depth by The Telegraph, which analysed Valuation Office Agency data to expose the true scale of the looming increases. The investigation revealed that many pubs across England and Wales are facing substantial hikes in rateable values between 2023 and 2026.

Specific examples include the Albion Inn in Adur, which saw its valuation rise by 41 % from £3,900 to £5,500. Thousands of other “public house and premises” entries are seeing similar rises of 30 to 50 per cent.

Sir James Cleverly described the Government’s approach as “a blatant attempt to mislead businesses and the British public”, warning that soaring tax bills were undermining fundamental trust in official Government statistics.

The row escalated further when Business Secretary Peter Kyle admitted that ministers “didn’t have access” to the full revaluation data before the Budget was finalised.

Speaking on Times Radio, he described the current administration as “a listening Government” and stated that additional support for the pub trade was being prepared following intensive lobbying from the sector.

UKHospitality has warned that a typical pub could see its rates bill rise by 15% next year, adding roughly £7,000 annually by 2028–29. This admission has intensified the pressure on Ms Reeves to deliver meaningful and transparent relief rather than statistical sleight of hand.

Following the public outcry, the Government has signalled it would announce further measures, prompting fresh accusations of yet another hasty policy reversal.

With pubs already grappling with rising energy costs, staffing challenges, and shifting consumer drinking habits, the business rates controversy has become a major test of the Government’s economic competence.

Many stakeholders fear that without substantial and immediate intervention, more of these cherished local institutions could face permanent closure.