Commenting on the UK government’s support package for the UK pub industry, Saxon Moseley, head of leisure and hospitality at RSM UK: “The announcement is a welcome, important first step in making the business rates system fairer for the pub industry. Pubs are the lifeblood of our communities and an integral part of our high streets; it was crucial for the government to take action to avoid widespread closures.

“Without intervention, the end of the Covid-era business rates support combined with changes to the rateable value would’ve come as a double whammy for the industry, particularly smaller, independent operators.

“While we welcome the news, more needs to be done. Changing the rates just for pubs and live music venues, but not restaurants and hotels, will create inconsistencies in the hospitality sector, adding further complexity and nuance in the tax system.

“By excluding restaurants from more favourable rates, there’s a risk they’ll have to compete even harder with pubs to cover the additional costs. Restaurants are already feeling the strain of subdued consumer confidence, with the NIQ RSM Hospitality Business Tracker showing the pub industry is driving sales growth, while restaurants fall behind.

“Hotels are also set to see significant rate increases due to the size of the properties, but some may argue they are better positioned to weather these costs given the strong demand in the sector. Pubs, however, tend to operate on tighter margins and with consumer sentiment already struggling, passing on these costs risks putting consumers off.

“Instead of tinkering at the edges of the existing business rates system, what’s needed is widespread reform that instils fairness in the hospitality market. By making it cheaper to operate on the high street, and therefore a more attractive place to invest in, this will help to keep the pub industry alive.”

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