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Labour to U-turn on pub business rates after backlash

The government will ease pub business rate hikes with sector-specific relief after lobbying from MPs and landlords, amid warnings of a 76% increase over three years, industry groups said.

  • The government plans to reconsider business tax relief for pubs due to backlash from Labour MPs and industry representatives, according to the Chancellor Rachel Reeves.
  • Thirty Labour MPs have written to Rachel Reeves requesting immediate support for pubs facing potential closures from the business rate increases next year.
  • Chancellor Rachel Reeves is preparing to reverse her decision to eliminate business tax relief for pubs, responding to fears that many pubs could close due to increasing rates.
  • Number 10 is engaging with the hospitality industry, with £4.3 billion in support already allocated to help businesses.
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Invezz broke the news in on Thursday, January 8, 2026.
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