Stuart Anderson MP has hailed a major victory for rural pubs, as the government has climbed down over its multi-billion hike in business rates. However, Stuart is devastated that the support excludes other hospitality venues in South Shropshire.
At the Autumn Budget on Wednesday 26th November 2025, the Chancellor Rachel Reeves announced a new 5p discount for retail, hospitality, and leisure businesses that stands at just quarter of the 20p discount that had been legislated for.
The discount does not offset above inflation increases in business rates that will take place in April and follows the previous decision to slash business rates relief for the hospitality sector from 75% under the Conservatives to 40% under Labour.
Amid enormous pressure, the Chancellor has been forced to announced a temporary package of support. It will see pubs get a 15% cut on new business rates bills from April. This will be followed by a two-year real-terms freeze, as well as a review into the method used to value them for business rates.
However, Labour have taken weeks to announce the partial U-turn which focuses exclusively on pubs rather than providing a sector-wide permanent rate relief - as Stuart had previously requested.
Earlier in January, Stuart called for a “fair and sustainable solution” to inflation-busting business rates increases that faces the county’s hospitality sector which supports 3,475 local jobs across 841 different venues.
Savings identified by the Conservatives would have seen business rates abolished for 250,000 businesses in the retail, hospitality, and leisure sector. This would have delivered substantial savings that could be invested in better premises, more staff, and lower prices for customers.
Rachel Reeves has now announced a time-limited cap on rising business bills, which would have seen an average pub’s business rates increase by 76% (or £12,900) to £111,300. However, the support is limited to pubs - leaving thousands of hospitality venues at risk of imminent closure. An average hotel’s business rates will increase by 115% (or £65,000) to £205,200.
Stuart has said that the Chancellor’s response is too late for hundreds of hospitality venues that have already closed for good under Labour’s watch. He has warned that cafes, restaurants, and hotels are still at risk of closure if support is not urgently extended to the whole sector.
Nearly 400 hospitality venues closed between October and December 2025 - equivalent to four every day, according to the Hospitality Market Monitor produced by NIQ. The Office for National Statistics (ONS) has revealed that there was a 70,000 drop in pay-rolled employees in hospitality in 2025, including almost 9,000 in December.
Stuart Anderson MP said:
"In yet another embarrassing climbdown, the government has been forced to reverse its decision to more than double business rates for pubs. While the government has finally recognised the consequences of its actions, the support announced is not sufficient to secure the long-term future of hospitality businesses in South Shropshire, which have already been crippled by tax hikes or closed down under this government. The Chancellor has blocked meaningful business rate reform, opting instead for a temporary support package that offers little relief and doesn’t even extend to other hospitality venues. Over four thousand people responded to my Shop Local Survey, revealing strong affection and a desire for our local high streets and town centres. However, business confidence has plummeted due to a combination of rising energy prices, tax hikes, and other challenges. Businesses right across Britain are at breaking point because of the Chancellor's reckless choices. She must go further and implement our fully funded plan to abolish business rates for thousands of high street businesses altogether."
