Pubs in England could be allowed to open later as Keir Starmer faces a backlash over hikes to business rates.
Sir Keir said the government is ‘talking to the sector, particularly hospitality and pubs’ about the ‘further support’ it could be given as high business rates threaten pubs with extinction.
‘We’re talking to the sector, particularly hospitality and pubs, about what further support we can put in, whether that’s licencing freedoms or other measures,’ Sir Keir said.
‘We want to talk to the sector. I want to keep working with them to make sure we can work this through.’
He added the government is ‘very open’ to the discussion of pubs having more freedom to be ‘open for longer’.
Business rates – a tax charged on commercial properties which is recalculated every three years – will see many pubs forced to pay higher bills from April.
Pubs were offered temporary relief from paying full business rates during Covid, but the Chancellor’s decision to scrap the discount in the Autumn Budget has now left many landlords contemplating closure.
Trade body UK Hospitality has warned that business rates for an average pub would increase by 76 per cent following Rachel Reeves’ changes.
Sir Keir said: ‘Obviously, what’s happened is there were reductions in place during covid which were always going to be unwound.
‘At some point, the overall rates are going to be lower. But I accept that because of revaluation, that means that some will have their bills going up.
‘We’re putting in place transitional relief.’
More than 1,000 pubs joined a campaign to bar Labour MPs from their pubs in protest at the government’s actions.
The Rock Inn in Bramley and the New George in Kirkstall, pubs in or nearby Ms Reeves’ Pudsey constituency, said they would refuse entry to the Chancellor if she tried to visit over the Christmas holidays.
But the manager of The Rock told The Daily Mail he would maintain the ban on Labour MPs despite the government looking at changing licensing rules.
‘Unbar? I don’t think so,’ said Terry Weston, manager of the New George. He added that Starmer’s plans ‘won’t be doing me any favours’ and the government should reduce business rates instead.
An employee from the Rock Inn added that opening later would ‘not make any difference at all’.
‘People can’t afford to come out with all the bills they have to pay and rising costs – it’s ridiculous.
‘When it comes to April and the minimum wage goes up, there’s going to be loads of pubs closing. They’re just killing us off. They don’t want people in pubs; they don’t want people talking to each other saying how bad things are.’
Shadow Chancellor Sir Mel Stride said: ‘Labour’s punishing business rates rise is crushing our high streets.
‘Over the next three years business rates will go up by 76 per cent for the average pub. Any business would struggle to cope with that.
‘We have set out a clear plan for controlling spending, especially the benefits bill, meaning a future Conservative government will scrap business rates for thousands of pubs, restaurants and shops on our high streets.’
Referencing the Prime Minister, leader of Reform UK Nigel Farage said: ‘the man does not understand business’.
He added that later licenses ‘cost pubs more in overheads’ so are ‘no use at all’.
However, celebrity chef and pub owner Tom Kerridge told LBC that Business Secretary Peter Kyle is ‘trying to understand’ the problem.
‘He has a meeting with Treasury next week. He’s presenting the case. He was incredibly supportive,’ Mr Kerridge said.
