Julia Lopez MP has written to the Chancellor, Rachel Reeves, calling for further action to protect pubs, cafés, restaurants and high street businesses from sharp business rates increases.
The letter follows a visit hosted by Mrs Lopez at an Upminster pub for the Shadow Chancellor, Sir Mel Stride, to hear directly from local hospitality and retail operators about the cost pressures they face. The visit attracted both national and local media attention and highlighted just how large the challenge facing hospitality businesses is.
Businesses at the roundtable described a mounting burden from higher employer National Insurance costs, reduced business rates support from April 2026, rateable value increases, energy costs and a tougher trading environment. Several warned that the combined impact is already forcing difficult decisions on staffing, investment and opening hours.
In her letter, Mrs Lopez said that the Government’s recent partial change of course on business rates does not go far enough, arguing that a limited discount does not address the underlying problem or provide certainty for businesses making decisions now.
Mrs Lopez also warned that the scale of projected increases risks jobs and the long term health of high streets, with many businesses reporting expected bill increases of around 50 per cent for shops and restaurants, and 100 per cent plus for some hotels.
Commenting, Julia Lopez MP said:
“Businesses across the constituency are telling me they are being pushed to the edge by steep rises in fixed costs, with some already cutting staff and taking on extra hours themselves just to keep going. A partial u turn will not protect viable pubs and restaurants from major bill shocks. The Chancellor needs to go further, urgently, with meaningful support now and credible long term reform that stops penalising investment and job creation on the high street.”
In the letter, Mrs Lopez urged the Chancellor to provide stronger protection from bill shocks for retail, hospitality and leisure, bring forward permanent reform to reduce the burden of business rates over the long term, and recognise the impact on employment, particularly entry level jobs.
