Government’s pub support package sparks calls for wider hospitality relief

The UK Government has recently announced a new support package for pubs, giving businesses a 15% cut to business rates bills from April.

This comes following the Government’s decision to backtrack on its plans to increase business rates for pub venues following the 2025 Autumn Budget announcement. 

While this move is being hailed as a major win for pub owners across the country, other hospitality firms — including restaurants, hotels, and cafes — feel overlooked, and have called for the Government to extend the relief across the wider hospitality sector.

The Government unveils business rates relief package for pubs

On Tuesday, the Government revealed a new support package for British pubs, aiming to ease the financial burden caused by rising business rates and boost local communities.

The support package includes slashing business rates by 15% from April, as well as a two-year real-terms freeze, and a review into the method used to value venues for business rates.

This new revelation comes after weeks of commotion from pub landlords after it was announced at the Autumn Budget that business rates would increase for hospitality businesses, causing landlords to bar Labour MPs from their doors in protest.

The Government’s support package aims to save the average pub £1,650 in 2026/27, with around 75% of pubs seeing their bills either drop or stay flat over the same year. It will also announce a new “High Street Strategy”, which is expected to be published later this year.

“If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive,” Chancellor Rachel Reeves said. 

“We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced.”

Support package leaves wider hospitality sector behind

While pub landlords may be breathing a sigh of relief, restaurants, hotels, and other hospitality firms feel they’ve been left out in the cold.

As the support package only applies to pubs, other hospitality businesses will not be eligible for the relief, and will be expected to pay higher business rates in the new tax year. The Federation of Small Businesses predicts an average rise of 52%.

While Labour MPs have called for a pause on business rate hikes for music venues, restaurants, gyms, nightclubs, and local shops have criticised the Government for not extending this support beyond these establishments.

Michael Kill, Chief Executive of the Night Time Industries Association, told The Guardian that the support package is “little more than a drop in the ocean when set against the reality of the current tax system and the cumulative damage inflicted by the last two budgets.”

Meanwhile, Kate Nicholls, Chair of UKHospitality, said that “the rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution.

“The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets,” she added. “Without clear action, they will face increasingly tough decisions on business viability, jobs, and prices for customers.”

How should hospitality firms respond?

Hospitality businesses that don’t qualify for the new support package should first check for Small Business Rates Relief (SBBR). Many small pubs, cafés, restaurants, and hotels may already be eligible for SBBR, which can reduce or even eliminate business rates depending on the property’s rateable value.

As Matt Harris, owner of Planet of the Grapes, advises in his latest column for Startups.co.uk, you should check whether the Valuation Office Agency (VOA) has the correct rates for your building, and challenge any inaccuracies before they push up your bill unnecessarily.

It’s also worth exploring other local or sector-specific grants, as some councils and trade bodies offer targeted support for struggling hospitality businesses. For example, short-term financial relief, energy or rent subsidies, or programmes that help businesses recover from post-pandemic challenges.

And with the Government’s High Street Strategy expected later this year, you should keep an eye out for any new support measures or updates to business rates that could benefit your operations.

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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