Shropshire Chamber of Commerce has welcomed news of a support package for under-pressure pubs to help keep them afloat – but says tweaks to business rates don’t go far enough.

The Government has announced a 15% cut in business rates for pubs and music venues in England for the next financial year.

It follows a backlash from licensing industry bosses who warned that tax changes announced by Rachel Reeves in her November budget could lead to mass closures, job cuts and price rises.

Ruth Ross, chief executive of Shropshire Chamber of Commerce, said: “Pubs are the heartbeat of many communities across our county, so any help from the Government is clearly to be welcomed.

“The Chancellor recognised in her last budget that the current business rates system is broken and holding back growth – but it is also incredibly unbalanced.

“We’ve seen an example of the challenging climate for pubs and restaurants right here in Shropshire in recent weeks, with the decision by TGI Fridays to pull out of Telford.”

Ruth added: “While we welcome any support available to our under-pressure pubs, companies in other parts of the hospitality industry are facing similar challenges. We know that some are facing an existential threat.

“Taxation and business rates remain one of the greatest fear factors in our quarterly economic surveys, and a third of firms questioned by the British Chambers of Commerce said they are worried about business rates.”

Kate Shoesmith, director of policy at the BCC, said: “This is good news for pubs and music venues in England, but it does not go far enough to protect many other businesses which are under huge pressure. 

“Our latest research shows that concern about business rates is its highest for at least eight years, with a third of all firms worried. In the hospitality sector that rises to 49%. 

“Companies have proven remarkably resilient through years of turmoil, including Brexit, Covid, rising energy bills and geopolitical crises, but there are limits to how much they can endure. 

“With new employment legislation coming down the tracks, a further inflation busting rise in the minimum wage and continuing global headwinds, the government must ease this burden. 

“The Labour Manifesto, in 2024, correctly identified that business rates were a disincentive to investment, created uncertainty and placed an undue burden on High Streets. It pledged to reform them and it is now time the Government delivered on that promise.  

“As a first step to fixing business rates it should move to annual revaluations, to give greater certainty around rateable value changes, and adopt a single flat rate 40p multiplier.  

 “These changes would provide greater transparency, simplicity and fairness ahead of a full review of the system.”