Business
Labour MPs warn Reeves’s business rates U-turn for pubs doesn’t go far enough
Rachel Reeves is facing backlash from Labour MPs, pub landlords and business owners over the “wholly inadequate” 15 per cent cut in business rates bills.
The support, which the Treasury has said is worth £1,650 for the average pub next year, came after warnings that a decision in the chancellor’s Budget to end the rate relief brought in during the Covid pandemic would lead to mass closures and job losses.
The anger prompted a national campaign of pubs led by TV presenter Jeremy Clarkson, barring Labour MPs from their premises.
The Independent first revealed that the government would U-turn on the plan to end the relief earlier this month, and the Treasury finally confirmed pubs and music venues would get 15 per cent off their business rates bills from April as part of a major support package.
However, other hospitality businesses such as hotels, restaurants and cafes will not receive additional support despite their own concerns over soaring tax bills.
The Independent has seen a letter from 50 Labour MPs, organised by Labour Knowsley MP Anneliese Midgley, a member of the culture select committee, warning that the change is not enough.
The letter, also signed by former minister Justin Madders, and leading Labour MPs Stella Creasy, Dan Carden, Sharon Hodgson, Alex Sobel, Kerry McCarthy and others, warns that music venues are still under threat.
They said: “The UK Music industry is one of our most important cultural and economic assets, delivering world-renowned artists, venues, festivals, studios and generating significant international soft power. In 2024, it contributed £8 billion to the economy.
“Many of us have been contacted by constituents in recent months who use and run these critical music spaces, explaining that they will be severely impacted by the 2026 business rates revaluation, scheduled to take effect on 1 April 2026.
“According to the Music Venue Trust, 84 grassroots music venues in England face rateable value increases of between 45 per cent and 275 per cent from 2025/26 to 2026/27. These increases do not represent marginal adjustments but existential threats.”
Announcing the support in the House of Commons on Tuesday, Treasury minister Dan Tomlinson said the property tax bills for pubs and music venues in England will be reduced by 15 per cent in 2026/27 and then be “frozen in real terms” for the next two years.
But responding to the announcement, Ms Creasy urged ministers to revisit the exclusion of cafes, soft plays and community centres from its plans, claiming it could lead to their closure.
She said: “I’m sure he does not want to be the minister responsible for sending toddlers into pubs, because the other places that their parents might take them during the day have closed down. That would not be in anybody’s interest.”
The Treasury’s intervention comes after an intensifying backlash from industry bosses and MPs over impending tax increases.
However, industry bodies UKHospitality and the British Beer and Pub Association (BBPA) had warned that pub business rates bills in England would still increase by an average of 15 per cent, or £1,400, in April without intervention.
They said this would have led to an average rise of 76 per cent, or £7,000, by the 2028/29 financial year.
And not all landlords were convinced. Dom Jacobs, founder and managing director of the Ardent Pub Group in London, said: “Rachel Reeves’ latest U-turn may be welcome, but it is wholly inadequate.
“Hospitality continues to shoulder an excessive tax burden, and this half-measure does nothing to change that.
“Instead of backing a sector capable of delivering real growth and jobs, the government has once again missed the mark, a failure that will inevitably push many brilliant publicans out of business.”
Matthew Todd, landlord of The Wonston Arms near Winchester, Hampshire, said: “I don’t see how it’s going to save the venues that are going to close – it’s actually a very small amount that’s being talked about. It’s woefully not enough, I’m afraid.”
Andy Lennox, who runs The Old Thatch in Wimborne, Dorset, said the rates relief was a “discount on a bill rise” and did not go far enough.
He said, “This is a bill that we can’t afford to pay anyway. It’s been discounted down, but it’s still going up. And essentially, we have always argued that there needs to be meaningful tax reform in line with Europe, so VAT cut to 13%.
“So ultimately, whilst it is welcomed that the government is listening, we don’t think it goes far enough.”
India’s budget focuses on infrastructure and defence spending and tax breaks for data-centre investments.
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Business
New Income Tax Act 2025 to come into effect from April 1, key reliefs announced in Budget 2026
New Delhi: Finance Minister Nirmala Sitharaman on Sunday said that the Income Tax Act 2025 will come into effect from April 1, 2026, and the I-T forms have been redesigned such that ordinary citizens can comply without difficulty for ease of living.
The new measures include exemption on insurance interest awards, nil deduction certificates for small taxpayers, and extension of the ITR filing deadline for non-audit cases to August 31.
Individuals with ITR 1 and ITR 2 will continue to file I-T returns till July 31.
“In July 2024, I announced a comprehensive review of the Income Tax Act 1961. This was completed in record time, and the Income Tax Act 2025 will come into effect from April 1, 2026. The forms have been redesigned such that ordinary citizens can comply without difficulty, for) ease of living,” she said while presenting the Budget 2026-27
In a move that directly eases cash-flow pressure on individuals making overseas payments, the Union Budget announced lower tax collection at source across key categories.
“I propose to reduce the TCS rate on the sale of overseas tour programme packages from the current 5 per cent and 20 per cent to 2 per cent without any stipulation of amount. I propose to reduce the TCS rate for pursuing education and for medical purposes from 5 per cent to 2 per cent,” said Sitharaman.
She clarified withholding on services, adding that “supply of manpower services is proposed to be specifically brought within the ambit of payment contractors for the purpose of TDS to avoid ambiguity”.
“Thus, TDS on these services will be at the rate of either 1 per cent or 2 per cent only,” she mentioned during her Budget speech.
The Budget also proposes a tax holiday for foreign cloud companies using data centres in India till 2047.
Business
Budget 2026 Live Updates: TCS On Overseas Tour Packages Slashed To 2%; TDS On Education LRS Eased
Union Budget 2026 Live Updates: Union Budget 2026 Live Updates: Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026-27 in Parliament, her record ninth budget speech. During her Budget Speech, the FM will detail budgetary allocations and revenue projections for the upcoming financial year 2026-27. Sitharaman is notably dressed in a Kanjeevaram Silk saree, a nod to the traditional weaving sector in poll-bound Tamil Nadu.
The budget comes at a time when there is geopolitical turmoil, economic volatility and trade war. Different sectors are looking to get some support with new measures and relaxations ahead of the budget, especially export-oriented industries, which have borne the brunt of the higher US tariffs being imposed last year by the Trump administration.
On January 29, 2026, Sitharaman tabled the Economic Survey 2025-26, a comprehensive snapshot of the country’s macro-economic situation, in Parliament, setting the stage for the budget and showing the government’s roadmap. The survey projected that India’s economy is expected to grow 6.8%-7.2% in FY27, underscoring resilience even as global economic uncertainty persists.
Budget 2026 Expectations
Expectations across key sectors are taking shape as stakeholders look to the Budget for support that sustains growth, strengthens jobs and eases financial pressures:
Taxpayers & Households: Many taxpayers want practical improvements to the income tax structure that preserve simplicity while supporting long-term financial planning — including broader deductions for home loan interest and diversified retirement savings options.
New Tax Regime vs Old Tax Regime | New Income Tax Rules | Income Tax 2026
Businesses & Industry: With industrial output and investment showing resilience, firms are looking for policies that bolster capital formation, ease compliance, and expand infrastructure spending — especially in manufacturing and technology-driven sectors that promise jobs and exports.
Startups & Innovation: The startup ecosystem expects incentives around employee stock options and capital access, along with regulatory tweaks that encourage risk capital and talent retention without increasing compliance burdens.
Also See: Stock Market Updates Today
The Budget speech will be broadcast live here and on all other news channels. You can also catch all the updates about Budget 2026 on News18.com. News18 will provide detailed live blog updates on the Budget speech, and political, industry, and market reactions.
We are providing a full, detailed coverage of the union budget 2026 here, with a lot of insights, experts’ views and analyses. Stay tuned with us to get latest updates.
Also Read: Budget 2026 Live Streaming
Here are the Live Updates of Union Budget 2026:
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