The government is expected to announce plans to water down business rate rises for pubs in England amid pressures from landlords and industry groups.
In November’s Budget, the Chancellor confirmed a permanent lower business rates multiplier for eligible Retail, Hospitality and Leisure (RHL) properties, replacing the temporary 40% relief from April 2026.
However, the reduced multiplier is only 5p lower than the standard rate, meaning many businesses are set to face higher bills from April.
For the past few weeks, more than 1,000 pubs have banned Labour MPs from their premises in protest at the increases.
In response to the anticipated U-turn for pubs, the British Independent Retail Association (Bira) has demanded equal treatment for small shops, warning that excluding retailers would be “an absolute scandal”.
Chief executive of Bira Andrew Goodacre said independent retailers face “exactly the same challenges” as pubs but have been “left out of discussions” about additional support.
“Independent retailers are suffering the same pressures as pubs - significant increases in rateable values, low sales due to poor consumer confidence, and rising labour costs,” said Goodacre.
“Our business model is under real stress, and we also have to deal with online retail giants and low-value imports escaping duty.”
Goodacre added that independent retailers have always been recognised alongside pubs in previous relief schemes, such as the RHL relief during the pandemic.
“If there is a new deal for pubs, we want to see the same for independent retail,” he said. “It would be an absolute scandal if community shops and hard-working shop owners are left to manage their own demise by this government.”
Excluding small shops from any new relief package would send a clear message that the government does not care about independent retail or high streets, warned the chief executive.
“Perhaps independent retailers need to follow the pubs’ example and start banning MPs from their premises too,” said Goodacre. “We need action, not warm words.”
Last week, the Association of Convenience Stores (ACS) called on the government to “act responsibly” and go further on business rates support for all RHL businesses before increases land in April.
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