venue bosses hit out at business rates slash and say it's a 'sticking plaster'

Pubs have come under massive financial pressure in recent years (Picture: Getty Images)

A top industry body has criticised Rachel Reeves’ cuts to pub and music venue business rates as ‘little more than a drop in the ocean’.

All pubs in England are to get 15% off their business rates this year after weeks of warnings the sector faces a massive spike in the tax.

The Treasury has announced the move,which will be followed by a two-year real-terms freeze in rates,after many Labour MPs were barred from their local by furious landlords.

Over the Covid pandemic,hospitality firms were given a 40% discount on the rates to help them cope with the serious knock from lockdown.

At November’s Budget,Chancellor Rachel Reeves confirmed this temporary relief was coming to an end – leaving many businesses facing a steep hike in their costs.

She also announced a lower multiplier would be used to calculate the tax,but this move was more than offset by the increase in bills.

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Metro's senior politics reporter Craig Munro breaks down all the chaos into easy to follow insight,walking you through what the latest policies mean to you. Sent every Wednesday. Sign up here.According to the Treasury,the new package of support will save the average pub an additional £1,650 in the coming financial year.However,the decision to help some parts of the hospitality sector without helping others was described by the Night Time Industries Association as ‘frankly baffling’.CEO Michael Kill said: ‘While any recognition of the pressures facing pubs and music venues is welcome,this intervention amounts to 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.’He added: ‘Pubs,bars,nightclubs,live music venues and cultural spaces are all part of the same fragile ecosystem,facing the same structural challenges and carrying the same disproportionate tax burdens.‘To support one part while ignoring the rest is not just short-sighted,it is fundamentally disconnected from how this industry actually operates.‘Once again,we are seeing sticking plasters applied to a much deeper problem that urgently needs to be addressed.’Matthew Todd,landlord of The Wonston Arms near Winchester,Hampshire,said: ‘I don’t see how it’s going to save the venues that are going to close – it’s actually a very small amount that’s being talked about.‘It’s woefully not enough,I’m afraid.’The latest intervention was announced in parliament this afternoon alongside a new High Streets Strategy due to be published later this year.Reeves said: ‘If we’re going to restore the pride in our communities,we need our pubs and our high streets to thrive.‘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.’Rachel Reeves announced changes to business rates at last year’s Budget (Picture: Reuters)Meanwhile,pubs and other venues will get to open late into the night to show matches at the World Cup this summer.The number of temporary events notices will be ramped up ahead of the big event,with both England and Scotland set to appear together for the first time since 1998.Due to time zones,some games will be played eight hours behind UK time meaning they will start and end late for Brits.The average business rate bill for hotels in England is set to increase by 115% – or £111,300 – over the next three years,according to statistics from UKHospitality.More than 20,000 fewer people were employed by the hospitality industry in December 2025 compared to the previous September,the body said – a figure it blamed on the rising tax burden.Speaking at the World Economic Forum meeting in Davos last week,Reeves defended focusing the rates relief on pubs.‘I do recognise the particular challenge that pubs face at the moment,and so have been working with the sector over the last few weeks to make sure that the right support is in place,’ she said.‘I think the situation the pubs face is different from other parts of the hospitality sector.’