‘Sticking plaster’ support plan for pubs neglects other sectors says Chamber

Richard Blackmore from The East Midlands Chamber

Full root and branch reform of business rates is still needed and must support more sectors and types of hospitality, East Midlands Chamber has said, in reaction to a new government package that will reduce the rates pubs pay.

Pubs will get a 15% cut to new business rates for a year, followed by a freeze for two years, which the government claims would save £1, 650 for an average pub.
Business rates reform is one of the asks in East Midlands Chamber’s Framework for Growth – the landmark document that outlines how to unlock the region’s potential and enable it to thrive.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Urgently addressing business rates is something we’ve been calling for and while relief for pubs is a welcome step forward and will ease some of the immense pressure on that one industry, it’s only a sticking plaster amid such high costs to keep pubs open, while other types of hospitality and other sectors still need support.

“Hotels, cafes and restaurants make up a large part of the hospitality sector but will not benefit, despite the Chancellor speaking of supporting communities, so the measures really need to be widened and not exclude venues classified outside the scope of the support package. Likewise, manufacturers, logistics firms, small businesses and those with physical bricks and mortar premises are among those that will be disproportionately hit with additional costs to foot from April.

“Business rates are the third greatest concern of East Midlands businesses, after inflation and corporate taxation, according to our Quarterly Economic Survey so the strength of feeling is clear.

“The Chamber’s Framework for Growth highlights the need for full root and branch reform of business rates. That is what is needed and the only way to approach rates that is fair. I would urge Government to deliver that reform at pace to reduce the burden on so many firms, allow them a level playing field against online competitors and incentivise investment.”