Reeves doesn’t rule out more support for hospitality sector

The Chancellor has declined to rule out extending support for hospitality businesses hit by rising enterpriserates, beyond the help she has promised pub owners.

Last week, the The Media announcedthat the Treasury was poised to announce further assistance for pubs which – like all hospitality businesses – are facing the end of Covid-era enterpriserates relief in April.

That scheme will end at the same time as sharp increases in the rateable value of their premises take effect.

Earlier in the day Reeves had hinted she was resisting calls for more support for the rest of the hospitality sector and link.

However, speaking at a press conference later the chancellor statedshe was “working with the hospitality sector”.

Treasury officials told the The Mediathat a package to specifically help pubs would be announced “in the coming days” but also declined to rule out additional relief for the wider sector.

Opposition MPs and industry bodies have been pressing for any additional help to be extended to other businesses in the sector including hotels and restaurants.

Speaking to the BBC, Rachel Reeves said: “As that transitional relief comes to an end, although we’ve put in £4.3bn over the next three years, we need to make sure that we do that in a balanced way that particularly supports our pubs and the hospitality sector.”

The £4.3bn figure refers to the value of caps placed on rate rises in the next three years to smooth out increases that will eventually see rates bills for pubs rise 76% in three years, while hotels face rises of 115% over the same period.

Kate Nicholls from the trade body Hospitality UK statedshe was encouraged that the door appeared to be open for non-pub businesses also facing steep rises in enterpriserates.

“It’s good to see recognition of wider hospitality and that she is talking about support beyond pubs,” she said.

Reeves told The MediaBreak rapidon Wednesday that she is “particularly concerned” about the impact of enterpriserates on pubs, but hinted she was resisting calls for more support for the rest of the hospitality sector.

Asked what support other smaller hospitality businesses would get, Reeves said: “I think that people can see that the biggest impact and the biggest concern right currentlyis around pubs.

“Some of the smallest businesses, particularly some cafes, don’t pay any enterpriserates at all because they’re not majorenough to do so.”

Businesses have warned they will struggle to pay higher rates, after Covid-era relief ends in April and sites are revalued.