UK Government wants to help pubs, minister insists amid worries for sector

More support for struggling pubs could be forthcoming, a senior minister hinted as he insisted the UK Government values “the role of the pub in British life”.

Ministers are facing growing Labour backbench concerns over the pub sector, amid the withdrawal of a Covid-era tax break announced at the budget.

Mr McFadden, who is known to be close with Prime Minister Sir Keir Starmer, insisted the UK Government was “talking to the pub industry” about its worries.

He told BBC Radio 4’s Today programme: “Let me just explain to listeners there are three different things happening with pubs right now: the actual rates that are charged, those levels have been reduced, but at the same time there’s been a revaluation which has pushed up bills, and some of the Covid support that was put in place a few years ago has been withdrawn.

“Left with no action from the Government, the combined effect of all of those three things would be a very steep increase in the bills for pubs.”

The UK Government “saw that coming” and put in place a £4.3 billion transitional relief fund, the senior minister said.

He continued: “Now, since we did that, pubs, the trade association, pub owners themselves, have said that’s not enough, you must understand our difficulties.

“We appreciate how important the pub industry is economically and culturally to the UK, so we’ll keep talking to the pub industry. We really value the role of the pub in British life. We want to help pubs.”

Pressed whether this meant the Government planned to U-turn on withdrawing the Covid-era tax breaks, Mr McFadden replied: “I’m not going to predict anything, but I do say to your listeners, we do appreciate the role of the pub in British life, it is something we value.

“Believe it or not, we’re human beings as well as politicians, so we understand the role that pubs play.”

Elsewhere, Conservative leader Kemi Badenoch has vowed to scrap business rates for thousands of British pubs as she accused the UK Government of treating them “like cash cows to milk”.

The Tory chief told The Daily Telegraph her party has “identified billions of pounds of savings from things like bringing down the welfare bill and reducing the size of the Civil Service”.

These savings would allow a future Conservative government to scrap business rates “entirely for thousands” of pubs, she said.

On Wednesday, a Labour MP urged the Prime Minister to review the Government’s business rates proposals.

Speaking at Prime Minister’s Questions, Rachael Maskell (York Central) argued that many businesses in her area will have to close down as a spike in business rates looms.

This is in part due to the end of Covid-era business rates relief in April, announced by Chancellor Rachel Reeves in the November budget, having previously been scaled back from 75% to 40%.

Also coming in April are new rateable values of business properties, which have been revalued to reflect changes in the property market.

Ms Maskell said: “In York, hospitality sees an average business rate rise of 41%, a music venue 44.4% and many independent shops increase around 27%.

“It will mean doors closing and trade ceasing, they just can’t do it.”

Sir Keir responded: “As she knows, during Covid, the rates went down and that was coming to an end, and that’s why we put in place interim relief as we move to the new rates.

“We are continuing to work with and talk to the sector on that support and what further support and action we can take.”