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Labour finally confirms long-awaited support package for pubs as sector continues to struggle

Labour has finally confirmed a support package of business rate relief for pubs, as the hospitality industry weathers a storm of rising operating costs and declining footfall.

From April, pubs will have their bills frozen for two years.

The long‑anticipated announcement has sparked backlash from live music venues and hotels, which say the wider hospitality sector faces the same pressures as pubs.

The package includes the relaxing of licensing rules for venues for hospitality venues ahead of this year’s World Cup.

Dan Tomlinson MP

The sector warned that Ms Reeves’ Budget tax changes could lead to mass closures, job cuts and price rises.

On Monday, the Revel Collective, which manages 62 pubs across the UK, appeared to be the latest casualty of this trend after filing for administration in a move that places 3,000 jobs at risk.

The group own popular hospitality chains, such as Revolution bars and Revolucion de Cuba.

The live music venue sector has called for the relief to be extended to them, with nearly 50 Labour MPs having written to the Chancellor, calling for the increase in business rates for music venues to be halted.

Jon Collins, CEO at music venue operator LIVE, said: “The decision to protect pubs while penalising the venues that bring customers through their doors is a self-defeating policy.

“Operators are already facing business rates increases of up to 400 per cent, putting venues of every size under severe financial strain and risking closures, job losses and higher ticket prices for fans.

Operationally, this will mean job losses and higher ticket prices. Even then, this policy will deliver fewer shows and reduced investment.

When an arena show happens, local hospitality benefits immediately; when shows are lost, that spending disappears. It makes no economic sense.”

During the announcement, Dan Tomlinson said: “The pubs haven’t had the support they needed for many years.”

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