In this week’s Enews, there is news on extra business rate relief for pubs. We also look at an £11 billion finance package aimed at small business and a positive forecast for UK inflation this year to update you on.
Pubs get 15% business rates relief
Pubs and live music venues in England will be given a 15% discount on their business rates bills from April and will not see increases for two years, the government announced.
It comes after a backlash against November’s Budget, which left many facing major increases in their business rates bills.
The government says that pubs have faced significant pressure as their numbers have fallen by nearly 7,000 since 2010, a roughly 15% reduction and amongst the highest across hospitality overall.
The support package will save the average pub an additional £1,650 in 2026/27, it adds.
Kate Nicholls, Chair of UKHospitality, said:
‘We welcome the recognition by the Prime Minister and the Chancellor of the scale of the challenges facing the hospitality sector. They have listened to us about the acute cost challenges facing businesses, all of which is impacting business viability, jobs and consumer prices.
‘The rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution. The government’s immediate review of hospitality valuations going forward is clear recognition of this.
‘The devil will be in the detail, but we need to see pace and urgency to deliver the reform desperately needed to reduce hospitality’s tax burden, drive demand, and protect jobs and growth. We will work with the government over the next six months to hold their feet to the fire to deliver this.’
Internet link: HM Treasury UKHospitality website
UK lenders agree £11 billion SME package
Five major UK banks have agreed a £11 billion lending package aimed at SMEs to support small business growth, the government has announced.
The lending commitment is one of the largest collective moves by the banking sector in over a decade. The government says this represents an ‘historic show of confidence in the UK economy’.
Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the government on 26 January at a roundtable in Westminster convened by the Business Secretary and the CEO of UK Export Finance Tim Reid.
Combined, the banks serve half of all British businesses across all corners of the country.
Peter Kyle, the UK’s Business Secretary, said:
‘Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.
‘The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise.’
Internet link: GOV.UK
UK inflation will fall in 2026
The UK can expect to see big falls in the rate of inflation this year, according to the Resolution Foundation.
The think tank’s prediction comes despite an increase in December 2025 that saw the UK end the year with the highest headline inflation of any G7 economy – an unwanted position it has now held for the past seven months.
UK inflation increased from 3.2% in November to 3.4% in December, keeping the UK at the top of the G7 leaderboard.
CPI inflation expectedly increased in December, driven by tobacco duty, airfares and food. Food prices rose by 4.5% in the 12 months to December, up 0.8% compared with November. Bread and cereals made the largest contribution to this rise, which is disappointing given such staples make up a larger share of spending for lower-income families.
The think tank says that better news is coming this year, with the Bank of England forecasting a broad-based 0.5 percentage point fall in January. With inflation still below the Bank’s forecast, it remains on track to head back towards its target rate over the course of 2026.
James Smith, Research Director at the Resolution Foundation, said:
‘UK inflation ended last year on a ‘high’ with an unwelcome uptick in price rises.
‘And while Britain hopes to lead the G7 economic leaderboard for growth, it has instead spent the last seven months at the top of the charts for inflation instead.
‘But big falls are due in 2026, with inflation finally returning to back to more normal levels. However, the scars from a long period of acute price pressures will continue to be felt by families.’
Internet link: Resolution Foundation website
