Business
Government to water down business rate rise for pubs
Simon Jack,BBC Business Editorand
Lucy Hooker,Business reporter
Getty ImagesA climbdown on forthcoming increases to the business rates bills faced by pubs in England is set to be announced by the government in the next few days.
The government is expected to say it will make changes to how pubs’ business rates are calculated, resulting in smaller rises to bills.
Treasury officials say they have recognised the financial difficulties facing many pubs after sharp rises in the rateable value of their premises.
The move follows pressure from landlords and industry groups that included more than 1,000 pubs banning Labour MPs from their premises.
The BBC understands it will apply only to pubs and not the whole hospitality sector.
The Treasury is also thought to be ready to relax licensing rules to allow longer opening and more pavement areas for drinking.
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.
That, combined with big upward adjustments to rateable values of pub premises, left landlords with the prospect of much higher rates bills.
A campaign to dilute the impact of these rises has been gaining traction in recent weeks, with pub owners and industry groups lobbying for more support.
Conversations between the government and the hospitality sector were “ongoing”, DWP minister Dame Diana Johnson said.
Speaking to Radio 4’s PM programme, she said: “We as a government want to make business rates fairer but you’ll also know we’re coming to the end of the transitional relief that was available because of Covid.”
On Wednesday Labour MPs called on the government to rethink its support for the industry.
Conservative leader Kemi Badenoch said: “What has happened is that over Christmas Labour MPs were banned from every single pub they tried to get into… so now they are pushing for a U-turn.”
She said the Conservatives had a “much better plan” which was to “slash business rates for all of the High Street, not just pubs”. She said business rates bills of less than £110,000 would be scrapped completely.
Reform also welcomed the climbdown, saying “pubs have already been lumbered with astronomical energy costs”.
The party’s deputy leader Richard Tice said: “Pubs are the backbone of our communities and a huge part of British heritage. Their closures would be a cultural catastrophe as much as an economic one.”
To calculate a pub’s business rate bill the rateable value of its premises is multiplied by a set figure: “the multiplier”.
The government had already offered some relief by reducing the multiplier for pubs, and may be about to reduce it further.
Alternatively they could boost the £4.3bn “transitional relief” fund brought in to ease the impact of withdrawing support following the pandemic.
Geoff RobbinsGeoff Robbins, who owns the Wheatsheaf Pub in Faringdon, Oxfordshire with his wife Jo, said it was “a great relief” that more help was on the way.
His rates are due to rise by around 80% over the next three years. He needs a discount on most of that, he reckons, after factoring in higher gas, electricity and staffing costs.
“Rates are a tax against your business whether you make a profit or loss… you’ve got to pay, there’s no way round it,” said Geoff, who got in touch with BBC Your Voice.
Industry groups also welcomed news there would be additional help.
Emma McClarkin, chief executive of the British Beer and Pub Association, said it was “potentially a huge win” for the sector.
“This could save locals, jobs, and means publicans can breathe a huge sigh of relief,” she said.
Kate Nicholls, chair of UK Hospitality, representing the industry, said the support should apply not just to pubs, but to all hospitality businesses affected by rising rates, including cafés and restaurants.
“We need a hospitality-wide solution, which is why the government should implement the maximum possible 20p discount to the multiplier for all hospitality properties,” she said.
Other sectors are calling for the support to be even broader, to include live music venues, theatres, galleries, gyms and retailers.
Unpicking the recent Budget would be seen by many as another U-turn following climbdowns on winter fuel payments, disability benefits and inheritance tax on farms and family businesses.
Shadow business and trade secretary Andrew Griffith said the change showed Rachel Reeves’ Budget was “falling apart”.
“Labour were wrong to attack pubs and now have been forced into another screeching U-turn,” he said.
Liberal Democrat Treasury spokesperson Daisy Cooper said: “This is literally the last chance saloon for our treasured pubs and high streets – so the government must U-turn, today.
“These businesses are worried sick, making decisions now, and can’t wait a minute longer.”
The calculation of business rates is an issue that is devolved in all four UK nations.
The discount on rates during the pandemic only applied to hospitality businesses in England.
Scottish businesses are waiting for the Budget there next week to hear how the Edinburgh government will approach the issue.
Pubs there will hope the Scottish government follows the UK government in offering some relief.
Additional reporting by Kris Bramwell
Pinnacle Blooms Network, the pediatric therapy venture of Bharath Healthcare Laboratories, has secured $70 million (Rs 630 crore) from Global Healthcare Fund to fuel its expansion plans.
The two-tranche Series A round, advised by Yukon Capital, is set to become one of the largest early-stage investments in child development infrastructure across Asia, reported Hindu Business Line.
The funding will be deployed in two phases. The first tranche of $70 million will support rapid domestic expansion and technology upgrades. A second follow-on tranche is planned as the company enters markets in Southeast Asia and the GCC.
Capital deployment will enable Pinnacle to scale its network from 70 to 300 multidisciplinary therapy centres within 24 months. It will also accelerate R&D for home-based TherapeuticAI solutions, support large-scale manufacturing of TherapySphere sensory rooms, and fund regulatory submissions for international market access.
At the core of the platform is the proprietary Pinnacle Child Development Operating System—a multi-patent-filed digital therapeutic ecosystem that measures, predicts, and personalizes every aspect of a child’s developmental journey across speech, motor, cognitive, and behavioral domains.
Aneesh Madhav, Chief Executive Officer, Yukon Capital, said, “Pinnacle has solved the fundamental problem in developmental health — how do you make therapy measurable, scalable, and accessible without losing the human element.”
Dr. Koti Reddy Saripalli, Founder G Chairman, Bharath Healthcare Laboratories, said, “The world has finally recognized that developmental health is not charity; it’s essential infrastructure. We’re not raising capital to grow. We’re raising capital to ensure that every child on earth who needs measurable therapy can access it.”
Elon Musk’s platform X has limited image editing with its AI tool Grok to paying users, after it came under fire for allowing people to make sexualised deepfakes.
There has been a significant backlash after the chatbot honoured requests from users to digitally alter images of other people by undressing them without their consent.
But Grok is now telling people asking it to make such material that only paid subscribers would be able to do so – meaning their name and payment information must be on file.
The BBC has approached X for comment.
Those who do not subscribe can still use Grok to edit images on its separate app and website.
“Musk has thrown his toys out of the pram in protest at being held to account for the tsunami of abuse,” said Professor Clare McGlynn, an expert in the legal regulation of pornography, sexual violence and online abuse.
“Instead of taking the responsible steps to ensure Grok could not be used for abusive purposes, it has withdrawn access for the vast majority of users.”
It comes after the government urged regulator Ofcom to use all its powers – up to and including an effective ban – against X over concerns about unlawful AI images created on the site.
Addressing concerns that sexualised images of adults and children had been generated by Grok, Prime Minister Sir Keir Starmer said it was “disgraceful” and “disgusting”.
He said Ofcom had the government’s “full support” to act on the content.
“It’s unlawful. We’re not going to tolerate it. I’ve asked for all options to be on the table,” he said in an interview with Greatest Hits Radio.
Government sources told BBC News: “We would expect Ofcom to use all powers at its disposal in regard to Grok and X.”
Ofcom’s powers under the Online Safety Act include being able to seek a court order to prevent third parties from helping the Elon Musk-owned platform raise money or be accessed in the UK.
The BBC has approached the regulator for comment.
Grok is a free tool which users can tag directly in posts or replies under other users’ posts to ask it for a particular response.
But the feature has also allowed people to request it to edit images – and ask it to digitally strip people of most of their clothing.
Grok has fulfilled many user requests asking it to edit images of women to show them in bikinis or little clothing – something those subject to such requests have told the BBC left them feeling “humiliated” and “dehumanised“.
However as of Friday morning, Grok has told users asking it to alter images uploaded to X that “image generation and editing are currently limited to paying subscribers”.
It adds users “can subscribe to unlock these features”.
Some posts on the platform seen by BBC News suggest only those with a blue tick “verified” mark – exclusive to X’s paid subscriber tier – were able to successfully request image edits to Grok.
Prof McGlynn said the move echoed X’s approach to pornographic Taylor Swift deepfakes on the platform last year – where it blocked searches for sexualised material generated of the popstar using a Grok AI video feature.
“He is doing this to stoke free speech arguments,” she added.
“He will claim regulation is stifling people’s use of this technology. But, all the regulation requires is that he takes necessary precautions to reduce harm.”
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Starting a SIP is easy, but building real wealth takes one extra habit. This simple yearly step can quietly transform an ordinary SIP into a powerful retirement corpus
By aligning your SIP with your income growth, you make full use of compounding while protecting your savings from inflation.
Nowadays, Systematic Investment Plans (SIPs) are widely seen as one of the most reliable long-term investment options. Many people begin investing a small amount every month from their first job to secure their future. However, few realise that a simple SIP strategy can almost double your retirement corpus. This lesser-known method is called a Step-Up SIP.
What Is A Step-Up SIP?
In a regular SIP, you invest a fixed amount in a mutual fund every month and continue with the same contribution for years. A Step-Up SIP improves on this approach by increasing your monthly investment slightly each year, usually by 5% to 10%.
As your salary rises over time, your ability to invest also improves. Step-Up SIP allows you to increase your investment gradually, without putting pressure on your monthly budget.
How Much Can A Regular SIP Create?
Let’s assume you are 30 years old and just starting your career.
Monthly salary: Rs 40,000
Monthly SIP investment (30% of salary): Rs 12,000
If you invest Rs 12,000 every month for 30 years without increasing the amount, and earn an average annual return of 12%, your retirement corpus could grow to around Rs 3.70 crore.
While compounding plays a major role in growing your investment, many investors ignore inflation. After 30 years, Rs 3.70 crore will not have the same purchasing power as it does today. Rising medical expenses, daily living costs, and lifestyle needs at retirement can significantly reduce its real value.
How A Step-Up SIP Delivers Bigger Returns
Now consider investing the same Rs 12,000 through a Step-Up SIP, increasing the amount by 8% every year.
Year 2 SIP: Rs 12,960
Year 3 SIP: Around Rs 14,000, and so on
With the same average annual return of 12%, your total corpus after 30 years could grow to approximately Rs 7.61 crore.
Simply increasing your SIP contribution each year can nearly double your retirement fund. This is why Step-Up SIP is considered one of the most effective ways to beat inflation.
The key difference is not the mutual fund scheme, but the discipline of increasing your investment regularly. By aligning your SIP with your income growth, you make full use of compounding while protecting your savings from inflation.
Who Should Opt For A Step-Up SIP?
Step-Up SIP is ideal for:
- Young professionals whose salaries increase every year
- Investors aiming to build a large retirement corpus
- Those who want to reduce the long-term impact of inflation
- People planning for children’s education or major future goals
- Investors seeking better inflation-adjusted returns
Planning Your SIP The Right Way
If you are planning a long-term SIP for retirement, simply starting an SIP is not enough. You must begin with the right amount and increase it every year.
Choosing equity mutual funds can be a smart move, as they have historically delivered returns that outpace inflation. For instance, many large-cap mutual funds have delivered average annual returns of over 12% over the past decade.
The right plan, financial discipline, and the habit of stepping up your SIP every year can help you build a strong retirement fund and enjoy a financially secure, worry-free life after retirement.
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January 09, 2026, 16:10 IST
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