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Budget 2025: Hospitality pleads for 'lifeline' as Rachel Reeves accused of imposing 'stealth tax'
The average UK pub faces a 66% business rates increase by 2026/27 despite a 5p discount, endangering jobs and venue viability, industry analysis shows.
- On Wednesday, Chancellor Rachel Reeves announced business-rates reforms promising permanently lower tax rates for over 750,000 retail, hospitality and leisure properties, but implemented a smaller discount than the government could have introduced.
- Following a revaluation of business properties, assessed values rose sharply and the pandemic-era 40% discount for retail, hospitality and leisure ends on March 31 next year, raising bills despite transitional relief.
- Analysis by UK Hospitality found an average pub will pay an extra £12,900 over three years, while tax advisory firm Ryan indicated restaurants' rates could jump 44.9% and shops 42.3% from April.
- Across the UK publicans warned the Budget risks closures and job losses, with some owners in tears and Labour MPs calling for a lifeline, as Phil Thorley reported 17 of his 18 pubs face higher business rates.
- Despite pledges to tax warehouses, a Treasury spokesman said transitional relief will phase in higher payments by year three, with a support package to cap bill rises for hospitality firms.
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'We're getting f***ed' - Britain's pubs plead for mercy after Rachel Reeves launches extraordinary 'stealth tax' raid
Britain's pubs are pleading for mercy over a "stealth tax" which has left them facing soaring business rates bills.At the despatch box, Rachel Reeves had publicly offered UK small businesses her backing through "permanently lower tax rates for over 750,000 retail, hospitality and leisure properties".While earlier this year, Labour had opened the door to lowering business rates bills for high street businesses.But the Chancellor only lowered them…
·London, United Kingdom
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Coverage Details
Total News Sources14
Leaning Left3Leaning Right3Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 27%
C 46%
R 27%
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