UK announces support package to help pubs survive rising taxes
27/01/2026 14:14
LONDON, Jan 27 (Reuters) - The British government on Tuesday announced a support package for the pub sector and live music venues, providing some relief on property tax rises announced last year which had left the hospitality industry reeling. Pubs, whilst suffering a long term decline driven in part by changing drinking habits and demographics, retain a centuries-old role in the social fabric of British communities and the country's national identity. Planned increases to taxes on commercial properties announced in November's budget prompted an outcry, including warnings of mass closures and even a group of more than 1,000 landlords banning Labour Party lawmakers from their premises. On Tuesday the government, having signalled earlier this month they would try to soften the blow, announced a new support package. "From April, every pub in England will get 15% off its new business rates bill on top of the support announced at budget. Pub's bills will then be frozen in real terms for a further two years," Treasury minister Daniel Tomlinson told parliament. "This support is worth 1650 pounds ($2,265.62) for the average pub just next year, and will mean that around three quarters of pubs will see their bills either fall or stay the same next year." The watering down of the tax rise is the latest in a string of partial or full reversals from Prime Minister Keir Starmer's government as, struggling to invigorate a relatively sluggish economy and suffering in the polls, he looks for ways to raise more money to balance the books and improve public services. Previous u-turns driven by pressure from within his own party and directly from voters, include a plan to raise more tax from farmers, cut welfare spending and reduce subsidies on energy bills for the elderly. ($1 = 0.7283 pounds) (Reporting by Sarah Young, editing by William James) ((william.james@thomsonreuters.com; +44 20 7513 4401;))