Reeves’ pubs U-turn: how business rates sparked a revolt, and why ministers are now under fire

15 January 2026

Paul Francis

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Rachel Reeves is preparing a U-turn on business rates for pubs after an unusually public backlash from landlords, trade bodies, and even some Labour MPs. In recent days, pubs across the country have reportedly refused service to, or outright barred, Labour MPs in protest, turning a technical tax change into a political flashpoint about competence, consultation, and whether the government understood its own numbers.

Two pints of frothy beer on a wooden ledge, reflecting on a window. Warm, dim lighting creates a cozy atmosphere.

The row centres on business rates, the property-based tax paid on most non-domestic premises. For pubs, it is often one of the highest fixed costs after staffing and energy. And while the government has argued its reforms were meant to make the system fairer for high street businesses, many publicans say the real world impact is the opposite: higher bills arriving at the same time as wage costs and other overheads are already rising.

What changed and why pubs reacted so fiercely

The immediate trigger was the November Budget package, which set out changes tied to the 2026 business rates revaluation and the planned move away from pandemic era relief. As the details landed, hospitality groups warned that many pubs would be hit by sharp rises because their rateable values, the Valuation Office Agency’s estimate of a property’s annual rental value, had increased significantly at revaluation.

A Reuters report published on 8 January 2026 described the government preparing measures to “soften the impact” of the planned hike after industry warnings that closures would follow. It also noted trade body concerns about elevated rateable values and warned that thousands of smaller pubs could face a bill for the first time.

The anger quickly became visible. ITV News reported on pub owners in Dorset who began banning Labour MPs after the Budget, with the campaign spreading as other pubs joined in. LabourList also reported that more than 1,000 pubs had banned Labour MPs from their premises in protest. Sky News similarly reported that pubs had been banning Labour MPs over the rises due to begin in April.

How business rates are actually calculated, with pub-friendly examples

Business rates can sound opaque, but the calculation is straightforward in principle:

Business rates bill = Rateable value x Multiplier, minus any reliefs

Where it became combustible for pubs is that multiple moving parts changed at once: revaluation shifted rateable values, multipliers were adjusted for different sectors, and pandemic era relief was being reduced or removed.

The government’s own Budget factsheet includes worked examples that show why bills can jump even when headline multipliers look lower.

Example 1: a pub whose rateable value rises modestly: In 2025/26, a pub with a £30,000 rateable value used a multiplier of 49.9p and then deducted 40% retail, hospitality and leisure relief. The factsheet sets out the steps: £30,000 x 0.499 = £14,970, then 40% relief reduces that to a final bill of £8,982. After revaluation, the rateable value rises to £39,000. The pub qualifies for a lower small business multiplier of 38.2p, so before reliefs: £39,000 x 0.382 = £14,898. Transitional support caps the increase, resulting in a final bill of £10,329.

Even here, the bill rises. The cap stops it from rising as sharply as it otherwise would, but it still climbs.

Example 2: a pub whose rateable value more than doubles: In the most politically explosive scenario, the factsheet describes a pub whose rateable value rises from £50,000 to £110,000 at revaluation. In 2025/26, the bill is calculated as £50,000 x 0.499 = £24,950, then reduced by 40% relief to £14,970. In 2026/27, before any relief, the bill would be £110,000 x 0.43 = £47,300. Transitional support then caps the increase, producing a final bill of £19,461.

That is still a meaningful jump in a single year, even with protections. For pubs operating on thin margins, that scale of increase can mean the difference between staying open and closing.

This is why so many publicans argue that the political messaging did not match the lived reality. They were told reforms would support the high street, then saw calculations that delivered higher costs.

What Reeves is now doing to correct it

The government has not published the full final package yet, but multiple reports describe a targeted climbdown.

Reuters reported that a support package would be outlined in the coming days and that it would include measures addressing business rates, alongside licensing and deregulation. LabourList reported that Treasury officials were expected to reduce the percentage of a pub’s rateable value used to calculate business rates and introduce a transitional relief fund. The Independent reported ministers briefing that Reeves was expected to extend some form of relief rather than scrap support entirely from April, after pressure from Labour MPs and the sector.

In practical terms, “softening” the rise can be done in a few ways:

Increasing or extending pub-specific relief so bills do not jump as sharply in April 2026
Adjusting the multiplier applied to pubs within the retail, hospitality and leisure category
Strengthening transitional relief so the cap on year to year increases is tighter
Supplementary measures like licensing changes, to reduce other cost pressures

The direction of travel is clear: the Treasury is trying to stop the revaluation shock from landing all at once on pubs.

The critics’ argument: ministers did not do their homework

The most damaging strand of this story is not the U turn itself, but the allegation that ministers did not understand the impact at the point of announcement.

Sky News has reported internal disquiet about the business rates increase, reflecting wider unease about the political cost of the policy. ITV has also reported pub owners arguing that the “devil is in the detail,” a polite way of saying the announcement did not match the numbers that followed.

Most seriously, reporting summarised from The Times states that Business Secretary Peter Kyle acknowledged ministers did not have key details about the revaluation’s effects on hospitality at the time of the November Budget, and that the property specific revaluations created an unexpected burden for some pubs.

That admission fuels the criticism that this was not simply a policy misfire, but a failure of preparation. The core accusation from critics is straightforward: if the government is reshaping a tax system built on property values, then the people in charge should have had a clear grasp of what the valuation changes would do to real businesses. If they did not, they were not doing the job properly.

Even if ministers argue the valuation process is independent, the political reality is that pubs heard one message, then saw another outcome. The result has been a crisis of trust that a late rescue package may soften, but not erase.

What this episode tells us about tax policy and trust

Pubs are not just businesses. They are community anchors and cultural institutions, which is why this backlash travelled so quickly from accountancy jargon to front-page politics.

Reeves’ U turn may yet prevent the worst outcomes for some pubs. But the episode has exposed a deeper vulnerability: when the government announces complex reforms without convincing evidence, it understands the knock on effects, and the backlash is not only economic. It becomes personal, symbolic, and politically contagious.

If the Treasury wants to draw a line under this, it will need to do more than patch the numbers. It will need to convince the public and the businesses affected that decisions are being made with full visibility of the consequences, not discovered after the revolt begins.

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A Look Back at the Most Iconic British TV Adverts of the 2000s

Connor Banks
Mar 13, 2025
4 min read

The 2000s, a time when TV adverts weren’t just interruptions but mini masterpieces that we actually enjoyed watching. Some made us laugh, some amazed us with their sheer creativity, and others embedded themselves so deeply into British culture that they’re still quoted today.

Let’s take a trip down memory lane and relive some of the most iconic British TV adverts from the 2000s, the ones that weren’t just commercials, but cultural moments.

1. Cadbury’s "Gorilla" (2007)

Who knew that an advert about a drumming gorilla would go down in history? In 2007, Cadbury released a commercial featuring a hyper-realistic gorilla, emotionally preparing himself before launching into Phil Collins’ legendary drum solo from In the Air Tonight.

Why it’s iconic:

Completely unexpected—it had nothing to do with chocolate but everything to do with pure joy.

Perfect soundtrack choice—the slow build-up and release mirrored the satisfaction of indulging in a Dairy Milk bar.

Instant viral success—this was one of the first UK adverts to truly explode online, becoming a cultural phenomenon.

Legacy:

The Gorilla advert proved that advertising didn’t have to be about product-pushing—it could be pure entertainment. It revived Cadbury’s brand and sparked a new wave of creative, surrealist advertising.

2. John Smith’s "No Nonsense" (2000s)

Few adverts in the 2000s captured British humour better than John Smith’s No Nonsense campaign, starring Peter Kay. These adverts were simple, blunt, and brilliantly funny, reinforcing the idea that John Smith’s was a beer for proper blokes, not for fancy nonsense.

Why it’s iconic:

Peter Kay’s everyman comedy—his deadpan humour made these ads stand out.

Catchphrases like "Ave It!" became legendary in football culture.

Relatable British humour—whether it was belly-flopping at a diving competition or smashing a school sports day race, these ads reflected everyday life with a twist.

Legacy:

The No Nonsense campaign made Peter Kay a national treasure and helped cement John Smith’s as the beer of choice for the no-fuss, down-to-earth drinker. Even today, people still shout "Ave It!" on the football pitch.

3. Compare the Meerkat (2009)

"Simples!" If you didn’t say that at least once in the late 2000s, were you even watching TV? What started as a simple insurance comparison site advert became a cultural phenomenon, thanks to a posh, Russian-accented meerkat named Aleksandr Orlov.

Why it’s iconic:

Aleksandr Orlov was an instant star—his snooty but lovable personality made him a household name.

Brilliantly absurd premise—people were mistaking CompareTheMarket.com for CompareTheMeerkat.com, so Aleksandr had to set the record straight.

"Simples!" became a national catchphrase, used by everyone from schoolkids to office workers.

Legacy:

Aleksandr became more famous than the actual company, leading to merchandise, books, spin-offs, and a continued advertising run into the 2020s. The success of the campaign skyrocketed CompareTheMarket.com’s business, proving how powerful a well-executed character can be.

4. Guinness "Surfer" (1999, but huge in the 2000s)

Even though it debuted in 1999, the Guinness Surfer ad remained one of the most talked-about and re-aired commercials throughout the 2000s. A black-and-white cinematic masterpiece, it followed a group of surfers waiting for the perfect wave—only for the waves to turn into giant, galloping white horses.

Why it’s iconic:

Stunning visuals—the white horses bursting through the waves looked mythical and otherworldly.

Powerful narration—with the unforgettable opening line:

"He waits. That’s what he does."

Perfect brand message—just like a slow-poured pint of Guinness, good things come to those who wait.

Legacy:

This advert defined Guinness advertising for years to come. It won numerous awards and is still voted one of the greatest ads of all time.

5. Tango - "You’ve Been Tango’d" (2000s)

Loud, chaotic, and slightly violent—Tango adverts in the 2000s were as bold as the drink itself. The most infamous one? The "Tango Slap", where an orange-painted man ran up to an unsuspecting drinker and slapped them across the face.

Why it’s iconic:

Outrageously funny—it was so ridiculous that people actually copied it.

So controversial it got banned—after kids started recreating the slap in schools, the ad had to be toned down.

Tango’s branding became instantly recognisable—the phrase "You’ve been Tango’d" became part of British pop culture.

Legacy:

While the original slap ad was banned, the "No Nonsense" spirit of Tango continued with new variations, including sumo wrestlers and explosive reactions.

6. Walkers Crisps – Gary Lineker (2000s)

For nearly three decades, Gary Lineker has been the face of Walkers Crisps, and in the 2000s, the adverts perfected the formula—Lineker trying to steal crisps and getting his comeuppance.

Why it’s iconic:

A consistent and lovable campaign—people expected Lineker to appear in every new Walkers ad.

Brilliantly simple humour—whether he was getting outsmarted by kids or fighting over a packet, the ads always entertained.

Memorable catchphrases—especially "No More Mr. Nice Guy."

Legacy:

The Walkers & Lineker partnership is one of the longest-running brand collaborations ever, helping Walkers remain the UK’s top crisp brand.

The 2000s were a golden era for British TV adverts. These weren’t just ads—they were pop culture moments that stuck with us, made us laugh, and sometimes even inspired us. Whether it was a drumming gorilla, a mischievous Lineker, or a Russian meerkat, these ads weren’t just selling products—they were shaping our collective nostalgia.