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UK government provides support to pubs to help them survive tax hike
Published by Global Banking & Finance Review®
Posted on January 27, 2026
3 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 27, 2026
3 min readLast updated: January 27, 2026
The UK government introduces a support package to help pubs with rising taxes, offering a 15% reduction on business rates to prevent closures.
By Sarah Young
LONDON, Jan 27 (Reuters) - The British government on Tuesday announced a support package for pubs and live music venues in England, providing some relief from the property tax rises announced last year, which left the hospitality industry reeling.
Pubs, whilst suffering a long-term decline driven in part by changing drinking habits and demographics, retain a centuries-old role in the social fabric of British communities and the country's national identity.
Planned increases to taxes on commercial properties announced in November's budget prompted an outcry, including warnings of mass closures, with a group of more than 1,000 landlords banning Labour Party lawmakers from their premises.
SECTOR AT RISK FROM MAJOR JOB LOSSES
The British Beer and Pub Association had warned that 15,000 jobs could be at risk from the changes as around 5,000 smaller pubs would be hit with a business rates bill for the first time.
Tuesday's package would give pubs a 15% discount on their business rates bills and freeze those bills for another two years.
"This support is worth 1,650 pounds ($2,266) for the average pub just next year, and will mean that around three quarters of pubs will see their bills either fall or stay the same next year," Treasury minister Daniel Tomlinson told parliament.
The government had already signalled earlier this month it would try to soften the blow for pubs. On Tuesday, it also said it would review the way hotels are valued for calculating rates, raising the prospect of further relief.
LATEST GOVERNMENT U-TURN
The watering down of the tax rise for pubs is the latest in a string of partial or full reversals from Prime Minister Keir Starmer's government as, struggling to invigorate a sluggish economy and suffering in the polls, he looks for ways to balance the books and improve public services.
Previous U-turns driven by pressure from within his own party and directly from voters, include a plan to raise more tax from farmers, cut welfare spending and reduce subsidies on energy bills for the elderly.
In a sign of the difficult conditions faced by hospitality businesses, Revel Collective, which owns 62 pubs and bars across Britain, appointed administrators on Tuesday, saying it had been hit by "external challenges".
It said 21 sites would be closed immediately with the loss of 590 jobs.
The government also launched a new High Street Strategy alongside the support package, which it said was aimed at boosting the retail and hospitality sectors.
($1 = 0.7283 pounds)
(Reporting by Sarah Young, editing by William James and Sharon Singleton)
Business rates are taxes paid by commercial property owners based on the value of their properties, used to fund local services.
The UK economy refers to the economic system of the United Kingdom, encompassing all economic activities, including production, consumption, and trade.
The hospitality industry includes businesses that provide services related to food, drink, accommodation, and entertainment to customers.
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