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Labour to U-turn on pub business rates after backlash

The government will ease pub business rate hikes with sector-specific relief after lobbying from MPs and landlords, amid warnings of a 76% increase over three years, industry groups said.

  • The government has decided to extend relief on business rates for pubs instead of canceling it in April, as previously planned.
  • UKHospitality reports an average pub could see a 15 percent rise in business rates next year, causing financial strain.
  • The sector is facing financial difficulties due to a combination of high costs and changes in drinking habits.
  • The government faced criticism for its business rate reforms, which were supposed to help smaller businesses but resulted in increased tax liabilities.
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Invezz broke the news in on Thursday, January 8, 2026.
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