Our nation’s pubs, cafes, and eateries play a vital role in the heart of communities nationwide. Supporting the vibrant hospitality industry in the UK, we are implementing lasting changes to business rates. In a landmark move announced during the Budget, pubs, restaurants, bars, and shops are set to benefit from a permanent tax rate reduction, moving away from the temporary adjustments of recent years.
Additionally, property values are undergoing revaluation by independent experts for the first time since the pandemic-induced decline. Recognizing the concerns of many business owners regarding potential bill increases in April, measures have been taken to shield those facing higher property values, limiting bill hikes to 5% or 15% compared to current rates in most cases.
While some pubs and hotels have seen significant increases in independently assessed values, the government is allocating substantial support to mitigate bill escalation for these establishments. Without this assistance, the pub sector would be looking at a 45% rise in overall bills next year, but with the support in place, this increase has been reduced to just 4%.
In a commitment to businesses, the government is allocating £4.3 billion in taxpayer funds towards a support package, safeguarding enterprises from steep bill hikes. This initiative aligns with broader efforts in the Budget to alleviate the cost of living and combat inflation, such as the forthcoming reduction of £150 in energy bills for families in April.
By easing financial burdens on families, there will be more disposable income available to spend in local stores, bolstering support for small businesses on our high streets.