𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Rachel Reeves appears to have signalled that her U-turn on pubs may be expanded to other parts of the hospitality industry. The Chancellor confirmed boozers will receive “more temporary support” in a climbdown over business rates and the unwinding of temporary financial relief granted to the hospitality sector during the pandemic.

The Treasury had maintained the U-turn on rates would be limited to pubs amid fears widening support would spook the markets. Ms Reeves said she was mulling extra financial help above the £4.3billion in relief already set for the next three years.

But she suggested in an interview with the BBC that this could be expanded, telling the broadcaster: “We need to make sure that we do that in a balanced way that particularly supports our pubs and the hospitality sector.”

The £4.3bn fund had been put in place to help pubs with the transition to higher rates, but the Chancellor confirmed an announcement on the extra aid will come “in the next few days and weeks”.

Government officials told the FT that the Chancellor was weighing up a broadening of the support package to the hospitality sector more widely.

Conservative Party leader Kemi Badenoch’s this week challenged the Government to abolish business rates for the high street altogether.

She argued the whole of the hospitality industry was being “clobbered” by Labour’s tax hikes.

When it was put to the Chancellor that many struggling publicans want details about business rates relief as soon as possible, she replied: “These changes are not due to come in for a few more months. So we’re going to get this right.

“But I think most people would accept that now the pandemic is over, some of that temporary support does need to come away, but it’s about the speed at which you do that.”

Jonathan Russell, chief executive of the Valuation Office Agency, told MPs on Tuesday that over 5,000 pubs are set for sharp jumps in business rates after their property tax valuations doubled in the wake of the Budget.

Mr Russell said 5,100 pubs have seen their properties’ rateable valuations rise by at least double and said pubs have seen valuations jump by an average of 32%. He stressed that around 15% have seen their valuations fall.

Valuations based on calculations from 2024 are due to take effect when the new financial year begins in April.