The government said it is protecting pubs, restaurants and cafes with a £4.3bn package of support, limiting firms’ business rates bills.
A Treasury spokesperson said: “This comes on top of cutting the cost of licensing to help more offer pavement drinks and al fresco dining, keeping our cut to alcohol duty on draught pints and capping corporation tax.”
But Elaine Wrigley, the owner of Atlas Bar in Manchester, said Reeves’ latest Budget was “smoke and mirrors”.
She told the BBC the rateable value of her bar, used to calculate its business rates bill, has jumped from £69,000 in 2023 to £97,000. And she said that even with lower multipliers for small retail, leisure and hospitality firms she is still facing a 15% increase in her business rates bill.
“She may well have said it’s the lowest rate and the best support but it’s from the highest base,” Ms Wrigley said.
She added: “We’ve put our prices up four times in the last 12 months, but we’re at a point now where we feel like we can’t put any more on to our customers, so subsequently our margins are being reduced and being squeezed which is not helpful.”
And Sacha Lord, chairman of the Night Time Industries Association (NTIA) said the business rates changes amount to a “stealth tax” on High Street pubs, restaurants and bars.
He told the BBC operators initially welcomed the Budget, but the impact of revaluations became clear within hours of the chancellor’s statement.
“Once this kicks in in April, we are expecting to see more closures than ever before, including during the pandemic,” Mr Lord warned.
The Conservatives dubbed the chancellor’s business rates changes “a bombshell” and warned many pubs, restaurants and shops would see their bills “going up, by a lot”.
Shadow business secretary Andrew Griffith said the government had previously consulted on a far larger discount to business rates, but had “bottled it”.
“The result will be more closures, fewer jobs, and lower growth,” he said.
He called on Reeves to change course urgently, adding that “businesses need certainty before they face these bills in April”.
The Liberal Democrats said Reeves should “throw our hospitality sector a lifeline”.
Treasury spokeswoman Daisy Cooper added: “Our pubs, cafes, and restaurants are already on their knees, and these choices will only force more high street businesses to shut up shop.”
She called for the chancellor to cut the rate of VAT for the sector.
