Government to water down business rate rise for pubs

The government is poised to announce a climbdown on forthcoming increases to the business rates bill faced by pubs.

In the coming days the government is expected to say it will make changes to how pubs’ business rates are calculated, resulting in smaller rises to bills.

Treasury officials say they have recognised the financial difficulties facing many pubs after sharp rises in the rateable value of their premises.

The move follows pressure from landlords and industry groups that included more than 1,000 pubs banning Labour MPs from their premises.

The government is expected to reduce the “multiplier” – the percentage of a pub’s rateable value used to calculate business rates bills.

That follows an upward revision of the rateable value of pub premises, which will lead to an average rates rise of 76% for pubs and 115% for hotels over the next three years.

That was not offset by a 5p cut to the percentage of premises value that business pay each year announced at the Budget.

Unpicking the recent Budget would be seen by many as another U-turn following climbdowns on winter fuel payments, disability benefits and inheritance tax on farms and family businesses.