Up to 1,000 Pubs Nationwide Ban Labour MPs Over Business Rates Increase in Rachel Reeves's Budget
Up to 1,000 pubs across the UK have banned Labour MPs following the decision to scrap the COVID-era 40% business rates discount in Rachel Reeves's November budget. This move has caused some venues' business rates to rise by as much as £30,000 annually.
In Poole, Dorset, 58 pubs are facing significant rate increases, with the Barking Cat Ale House and the Poole Arms each expecting nearly £9,000 extra per year. Other pubs in the area have seen rates rise between 600% and 800%, with some even reporting increases exceeding £1,000 per month.
Pub landlords have described these increases as a 'pub destroyer,' threatening the viability of many venues already struggling with rising wage costs and beer prices. Poole's Labour MP Neil Duncan-Jordan has written to the chancellor, urging a reconsideration of the policy and expressing readiness to support amendments to the Finance Bill aimed at mitigating the rises.
During Prime Minister's Questions, the government maintained that the temporary COVID relief period had ended. The Prime Minister pointed to a new £4 billion transitional relief package designed to cushion the impact of these changes. The budget reflects a shift in burden to business rates as the COVID-era relief ends. Political tensions were evident in the PMQs session, with Kemi Badenoch and Sir Keir Starmer clashing over the consequences of the budget for pubs.
Rachel Reeves has pledged to support pubs, but the removal of business rates relief marks a challenging turning point for many public houses nationwide.
