![\"\"](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/01\/Reeves-and-pint.png\")
A Treasury u-turn on increases to business rates for pubs has prompted calls for a wider review and will pose questions for the Scottish government ahead of next week\u2019s Holyrood budget.<\/p>\n
Chancellor Rachel Reeves is pledging changes to the rates calculation for pubs but there are calls from across the economy for similar help as well as urgent reform of the rates system.<\/p>\n
The move follows pressure from landlords and industry groups, while more than 1,000 pubs banned Labour MPs from their premises.<\/p>\n
In her November Budget, Ms Reeves scaled back business rate discounts that have been in force since the pandemic from 75% to 40% \u2013 and announced that there would be no discount at all from April.<\/p>\n
A\u00a0third of firms\u00a0(34%)\u00a0questioned by the British Chambers of Commerce said\u00a0they are worried about business rates. This is\u00a0the highest level since the BCC started asking the question in\u00a0the spring of\u00a02017.\u00a0<\/p>\n Companies cite cost pressure from business rates as a key reason for increasing prices and delaying expansion of their premises.\u00a0<\/p>\n While the Government has\u00a0indicated\u00a0it is considering a rethink on business rates for pubs, BCC research shows the\u00a0disquiet\u00a0goes much wider.\u00a0<\/p>\n The hospitality, manufacturing and\u00a0logistics\u00a0sector face the highest levels of concern, but business size is also a factor, with anxiety over rates highest for firms with 10 to 49 employees (43%).\u00a0<\/p>\n This follows BCC data from\u00a0February\u00a02024 which found that 27%\u00a0of surveyed businesses said\u00a0they had\u00a0scaled back or cancelled plans to upgrade or open premises\u00a0as a direct result of business rates costs.\u00a0\u00a0<\/p>\n In Scotland, there is already concern about business rates divergence which sees many firms paying more, or not benefiting from discounts available to similar premises in the south. A campaign to halt the forthcoming business rates revaluation has been supported by dozens of businesses and trade groups.<\/p>\n Kate Shoesmith, director of policy and insights at the BCC, said:\u00a0 \u201c<\/strong>The Chancellor recognised in the Autumn Budget that the current system for business rates is broken and\u00a0holding back\u00a0growth. But it is becoming increasingly clear that the changes\u00a0she\u00a0set\u00a0out are not balanced and leave some sectors over-exposed.\u00a0<\/p>\n \u201cWhile news of a carve out for pubs is welcome, there are many other smaller hospitality companies facing an existential threat.\u00a0Meanwhile at the other end of the scale, airports and hotel chains are expected to pay millions more.\u201d<\/p>\n In England, the BCC wants\u00a0an\u00a0uplift\u00a0in\u00a0the level of transitional relief\u00a0to offset the huge upswing many firms are facing in their rateable values\u00a0come April.\u00a0<\/p>\n \u201cThe Government must then\u00a0deliver\u00a0the\u00a0more ambitious root and branch reform of the\u00a0whole\u00a0system\u00a0promised in their manifesto,\u201d said Ms Shoesmith.\u00a0<\/p>\n \u201cTo fix\u00a0business rates it\u00a0should\u00a0move to annual revaluations, to remove the steep jumps in bills caused by longer gaps, and it must adopt a single flat rate multiplier of 40p.\u201d<\/p>\n See also<\/strong><\/p>\n Sarwar giving SNP budget a \u2018free pass\u2019<\/strong><\/p>\n \t <\/div>\n![\"Longstone](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2025\/01\/Longstone-Inn.jpeg\")
![\"Shona](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2023\/05\/Shona-Robison-in-parli-25-May-23.png\")