ON 9 January 2026 The Labour Government announced a U-turn on proposed increases to business rates on pubs. Local Lib Dems believe this should be extended to the whole of the hospitality sector to help local struggling businesses. In her November Budget, Chancellor Rachel Reeves scaled back business rate discounts that have been in force since the pandemic from:- 75% to 40%, and announced that there would be no discount at all from:- April 2026. But the the Labour Business are saing that the rates U-turn for pubs should go further and cover the whole hospitality industry say local Lib Dems.

In Sefton the Liberal Democrat Councillor Mike Sammon has submitted a motion to Sefton Council calling for urgent national action to support pubs, cafés, restaurants and bars across the borough, warning that many businesses are being pushed to the brink by rising costs.  

The motion calls on the Council to press the Government for a temporary cut to VAT for hospitality and a reversal of the recent increase in Employer National Insurance contributions for hospitality businesses. It also calls for the introduction of a fully funded Retail, Hospitality and Leisure business rate relief scheme.

The motion will be considered at a forthcoming meeting of Sefton Council on:- Thursday, 15 January 2025, at Bootle Town Hall, which will also be live streamed.

Cllr Mike Sammon Lib Dem Councillor for Cambridge Ward has explained that:- "The hospitality businesses are the backbone of our Town Centres and Villages, especially here in Southport. These aren't failing businesses, they're being squeezed by rising costs that are largely outside their control. It's incredibly worrying that the Chancellor didn't appreciate what the impact of this damaging rise would be and the financial realities facing many:- pubs, hotels, cafes and other hospitality outlets. Any U-turn should be extended to the whole of the sector otherwise we will see more places closing and more people losing their jobs, which we have already seen in Southport. Sefton Council doesn’t set VAT, National Insurance or business rates, but we do have a responsibility to stand up for local businesses and use our voice. This motion is about making sure the real impact on Sefton’s hospitality sector is clearly heard by those who do make those decisions.”

The motion also calls for closer engagement with both Southport BID and Sefton Council's tourism team to ensure hospitality businesses are supported locally and that available assistance is clearly communicated.

Cllr John Pugh added:- "If we want vibrant Town Centres rather than boarded up high streets, we need action now. This is about protecting jobs, supporting local economies and safeguarding the places that give our communities their character."

Simon Shaw, Lib Dem Councillor for Birkdale, added:- "Staggeringly we seem to be seeing more U-turns than policy announcements from the Labour Government. This will be the 12th such since Labour came into Government, including:-inheritance tax raid of farmers, 2 child cap, welfare reform and winter fuel payments. At a time when cost of living is so high, the economy so precarious and growth desperately needed, it’s staggering that there can be so much inconsistency and indecision from the Government. Let’s hope they see sense on not cutting support for hospitality."

What are your thoughts on this?