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09 January 2026

Daily Newsletter

09 January 2026

Pubs seek additional tax cut from UK Treasury – report

The move comes as the end of pandemic support and a property revaluation are set to raise costs for many hospitality businesses.

Umesh Ellichipuram January 07 2026

UK pub and hotel associations have sought additional fiscal relief in a meeting with Treasury staff, Bloomberg has reported.

The groups pressed for additional tax relief to offset the impact of measures introduced by Chancellor Rachel Reeves in her November budget.

The British Beer and Pub Association head Emma McClarkin has reportedly asked UK Exchequer Secretary Dan Tomlinson for a pub‑focused reduction in business rates.

She was quoted by Bloomberg as saying: “We are hopeful the government understand the need for a fast and meaningful solution to secure the future of our pubs.”

During her budget speech, Reeves said the measures delivered the “lowest tax rates since 1991” for more than 750,000 retail, hospitality and leisure sites by cutting the business‑rates multiplier.

However, the end of pandemic support and a property revaluation are expected to push up costs for many hospitality companies.

Sector groups argue that the combined effect could threaten some operators and want the Treasury to soften or revise the package.

UKHospitality estimates that, if policies stay as they are, business rates for a typical pub could be 76% higher by 2028/2029, while an average hotel could face a 115% increase. The group is also calling for a larger discount across the sector.

Ministers have pointed to three‑year transitional relief that limits annual increases to 15%.

UK Prime Minister Keir Starmer said he accepted that “for pubs and others, the revaluation means they will struggle” and that discussions on further help would follow.

Starmer’s spokesperson Tom Wells said officials are also considering reducing bureaucracy and adjusting licensing rules, measures first outlined in November.

The Treasury said its budget steps avoided what would otherwise have been a 45% rise in pubs’ total bills next year, instead leaving an estimated 4% increase.

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