Caroline Welcomes Government U-Turn on Business Rates
Dame Caroline Dinenage, Member of Parliament for Gosport, has welcomed today’s decision by the Government to provide emergency support to hospitality businesses.
As Chair of the Culture, Media and Sport Committee, Caroline had previously written to the Chancellor to warn about the disproportionate impact of the Government’s business rates reforms on hospitality and leisure premises. The letter had urged the Treasury to publish the analysis that led to the proposed tax changes and for the Chancellor to confirm when the further support suggested by the Prime Minister will be announced.
Caroline raised the concerns voiced by the hospitality and leisure industry in the House of Commons, such as in a debate on Taxes in November and a debate on Seasonal Work in December. Highlighting the adverse impact on her constituents due to the high proportion of employees in the care, leisure, and service industries, Caroline pointed out that two pubs and restaurants had closed every day since the 2025 Budget.
Independent analysis had suggested that without a change of direction from the Government pubs would face an average rise in rates of 76% over three years. In Gosport, that meant that a pub like The Windsor Castle, Caroline’s 2025 Gosport Pub of the Year, would see around a 142.5% increase in business rates.
Meanwhile the Music Venue Trust’s Annual Report noted that half of UK’s grassroots music venues saw no profit at all in 2025.
Today the Treasury announced an emergency £300 million support package solely for pubs and music venues. Measures amounted to a freeze in rates for three years, with every pub in England getting 15% off new bills.
Speaking about the measures, Caroline said: “I’m glad that Government has listened to the sector which was crying out for support in the wake of the Chancellor’s hasty Budget. It was clear to everyone that without support she would have presided over a crisis of her own making on our high streets.
“Pubs have been at the epicentre of a series of shocks over the past few years, like Covid, the cost of living, and energy insecurity due to Russia’s invasion of Ukraine. The last thing they needed was a 76% business rates increase.
“However, it isn’t just pubs and music venues that feel these pressures. Hotels will see a 115% increase in business rates. Cinemas and sports clubs haven’t fully recovered yet from the pandemic and are being hit. This is emergency support, not meaningful reform. Going forward, the Chancellor has to focus on reform that taxes clicks, not bricks.
“For now, I know pubs in Gosport, Lee on the Solent, Stubbington, and Hill Head will be glad the Government has heard their concerns. I’m also delighted that music venues have been included in this support package. It may go some way towards slowing the youth unemployment trend that has seen a 25% increase in youth unemployment locally since the first Labour Budget.
“I’ll be monitoring this situation closely for any further developments.”
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