Published by Global Banking and Finance Review
Posted on January 8, 2026
Published by Global Banking and Finance Review
Posted on January 8, 2026
LONDON, Jan 8 (Reuters) - Britain is set to outline a package of measures to soften the impact of a planned hike in business rates on pubs after hospitality groups warned the tax measures announced last year would result in pub closures.
Pubs, part of the fabric of communities across Britain for hundreds of years, had demanded specific relief after finance minister Rachel Reeves announced changes to business rates, a type of property tax on all commercial premises, in her November budget.
Industry group the British Beer and Pub Association (BBPA) said 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. The BBPA has been engaging with the government over addressing the elevated "rateable value" of many pubs that results in higher bills.
The BBC said the government would water down the planned business rate rises on pubs, as part of a package of support for the sector.
Asked about the report, a Treasury spokesperson said a support package for pubs, including measures addressing business rates, licensing and deregulation, would be outlined in coming days, without giving further details.
Britain's Prime Minister Keir Starmer has made climb downs on a number of policies. In December, the government scaled back its plan to raise more tax from farmers, months after it backed down on cuts to welfare spending and scaled back a proposal to reduce subsidies on energy bills for the elderly.
(Reporting by Catarina Demony, Alistair Smout and Sarah Young, editing by James Davey and Paul Sandle)
Business rates are a tax on non-domestic properties, such as shops and offices, which helps fund local services. The amount is based on the property's estimated value.
The hospitality industry encompasses businesses that provide services related to food, drink, accommodation, and entertainment, including hotels, restaurants, and bars.
The UK economy is the economic system of the United Kingdom, characterized by a mix of private and public enterprises, and is one of the largest economies in the world.
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