Pub groups rally as Reeves set to U-turn on business rates.


Pub groups Marston’s and Mitchells & Butlers gained on Thursday following reports that Chancellor Rachel Reeves is set to make a U-turn on plans to scrap business rate relief for the hospitality industry.

  • Mitchells & Butlers
  • 08 January 2026 14:30:23
Marstons

Source: Sharecast

According to The Independent, Reeves is expected to extend relief to help landlords with rising bills instead of scrapping cash support from April.

In the Budget last November, the chancellor announced plans to scale back business rate discounts that have been in place since the Covid pandemic to 40% from 75%. She also said there would be no discount at all from April.

But ministers told The Independent that Reeves was now expected to row back on her plans, with one saying: "There’s going to be a U-turn on pubs."

Another said the changes were "politically unsustainable" in a year where the elections in May could decide whether Keir Starmer survives as Labour leader and prime minister.

According to officials cited by the Financial Times, Reeves commissioned officials and junior ministers to examine the impact of her Budget on the sector in recent weeks after a major backlash from landlords. It was understood that she concluded that pubs need relief from the full impact of changes to business rates that were announced in the Budget.

There will also be changes to licensing to allow later hours and more pavement drinking, the FT said, adding that a package of measures could be announced as early as Friday.

At 1430 GMT, Marston's shares were up 2.8% at 65.90p, while M&B shares were 3.2% higher at 276.97p. JD Wetherspoon was trading up 1.2% at 755.40p.


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