Propel Newsletter Archive Page

Ministers look at concessions for UK pubs as business rate backlash grows: Ministers are exploring options for concessions to defuse a growing row with pub landlords over rising business rates. The FT reports that in the strongest signal yet that the government is being forced to soften the blow to the hospitality industry from November’s budget, a Downing Street spokesman said Treasury ministers were in talks with the sector “to make sure we can work this through”. The spokesman said: “Whilst we don’t provide running commentaries on ministerial meetings, that engagement continues.” One industry source said they had been given a strong impression there was “movement” within government on the issue of business rates, while cautioning that they were still in the dark about the type of concessions offered. “Resolving this crisis will depend on exactly what is offered and how soon – any solution needs to focus on the root of the problem – rates and tax burden,” they added. A second industry source suggested the government could address the issue by providing greater transitional relief on hospitality business rates for the next four years, cut duty on draught beer, or give a specific discount to the multiplier – a crucial component in calculating rates – for hospitality. The hospitality industry had been expecting a 20p discount to the multiplier in the Budget but received just 5p for every £1 of tax paid, the benefit of which was wiped out by the increase in pubs’ rateable values. Emma McClarkin, chief executive of the British Beer and Pub Association, said “the clock is ticking” for many pubs that would not survive unless their bills come down. “This is why it’s heartening that the government is in listening mode and seems willing to deliver on their promise to support pubs and deliver meaningful reform for them.” Sacha Lord, chair of the Night Time Industries Association, said he was hearing “from good sources that the Treasury is now looking” at the issue of business rates. He added that, with local elections looming in May, “mass pub closures are the last thing the government needs right now”. Earlier this week Sir Keir Starmer admitted that pubs would “struggle” because of an increase in their property rate values. The prime minister said that the government was looking at ways to help the industry, including licensing reforms. However, pub bosses quickly dismissed the olive branch and said that longer opening hours did not address the burdens of higher costs. At the same time, The Times reports that ministers will consider a bailout for pubs facing imminent closure over an impending rise in business rates. Government sources said it was inevitable that financial support would be examined for the most-affected sectors, after Labour MPs and business groups raised concerns. Backbenchers said the Treasury was in “listening mode” and had adopted an approach different from the closed door they faced when trying to raise concerns last year over changes to farm inheritance tax. More than 30 MPs, most of whom are Labour, have told Rachel Reeves, the chancellor, that pubs are facing an unprecedented challenge and many will close as a result of the revaluation to begin in April. The Times has been told that ministers are looking at what extra financial support can be given to some of the most affected sectors. Business rates vary by sector, with a range of discounts across the different industries. Government sources said sector-specific support would not be controversial or difficult to administer. More than 30 MPs said in a letter orchestrated by Tonia Antoniazzi, the Labour MP for Gower, that concern for pubs was “unprecedented”. They wrote in the letter to Reeves, seen by The Times and sent before Christmas: “We will see many more pub closures … which will have a hugely negative impact on all our local communities through loss of employment and social value, as well as a knock-on effect on local supply chains.” The MPs asked for pub-specific relief, saying the sector was “under extreme economic pressure” and that a 5p discount for retail, hospitality and leisure businesses did not go far enough.

More than 500 company founders, marketing executives and technology bosses already registered to attend 2026 Restaurant Marketer & Innovator European Summit: More than 500 company founders, marketing executives and technology bosses have booked places to attend the 2026 Restaurant Marketer & Innovator European Summit, which is returning for its eighth edition. The conference has doubled in size this year with content occupying two stages on both days, taking place on 20 and 21 January at Hilton Bankside in London. This new, bigger venue allows for a dual-stage format. The conference will focus on technology, marcomms strategies, proposition, brand building, the latest market insights, digital developments and diversification of revenue streams. It is designed for customer focused chief executives, senior marketers, technology and innovation teams, as well as investors wanting to better understand the latest marketing, technology, innovation and development opportunities to build market share and grow. Propel managing director Paul Charity said: “Technology and marketing are at the heart of this industry so this event is bigger than ever before to focus on these subjects. We are hosting speakers from a large number of operators talking about the tactics, strategy and technology that’s making a difference for them. The conference will offer unrivalled insight and expertise to help operators stay ahead of the game in what remains a very challenging environment.” For the full speaker schedule, click here. A one-day ticket for operators is £320 plus VAT while a two-day ticket is £575 plus VAT. Supplier tickets are £950 plus VAT for the two days. Propel Premium Club subscribers receive a 20% discount. To book, email: rmi@propelinfo.com.

Badenoch – My blueprint to save Britain’s pubs: Kemi Badenoch pledged to abolish business rates for thousands of pubs as she backed The Telegraph’s campaign to save Britain’s locals. Writing for The Telegraph, the Tory leader also vowed to slash the average pub’s energy bills by £1,000 under plans to reverse Labour’s raid on the local. The Telegraph has launched a campaign to save the UK’s pubs, calling on Labour to stop its assault on the sector and cut tax and red tape. Politicians and celebrity landlords, including Tom Kerridge, the TV chef, and James May, the former Top Gear presenter, have backed the campaign, piling pressure on Sir Keir Starmer to abandon tax rises that are pushing pubs to the brink. Setting out her blueprint to protect Britain’s locals, Badenoch said: “Like so many of Britain’s small businesses, pubs are being treated by Labour like cash cows to milk instead of as places to protect. Just another group of people to squeeze to fund their pet projects and handouts. Well, the Conservatives have not given up on saving the Great British Pub. Since we have left office, things have got a whole lot harder for them. And so, under my leadership, we are going to be bolder and take radical action to save your local boozer.” Under Mrs Badenoch’s plans, the Tories would scrap business rates for thousands of pubs on Britain’s high streets entirely, a move paid for by cutting the ballooning benefits bill and reducing the size of the Civil Service. The party would then cut the average pub’s energy bill by more than £1,000 through its cheap power plan, which involves rolling back green energy rules. Badenoch added: “The Telegraph is right to be campaigning about the future of the British pub. Pubs are the canary in the coal mine of the Britain we want to be. If we lose them, we don’t just lose a load of small businesses and the centre of local communities. We lose a huge part of our way of life.”

Sir Tim Martin – The British and Irish culture of drinking beer in the melting pot of the pub has been eroded by the tax system: Sir Tim Martin, chairman and founder of JD Wetherspoon, has said that the “British and Irish culture of drinking beer in the melting pot of the pub has been eroded by the tax system”. Writing in support of The Telegraph’s campaign to save the British pub, Sir Tim said: “The tax system is killing pubs and stems from an era when more than 90% of beer was consumed in pubs, pubs sold hardly any food, supermarkets hardly sold any beer, VAT was 8% and there was no minimum wage. Today, food is usually 20-50% of overall pub takings and they pay VAT of 20% whereas supermarkets pay nothing. Pubs also pay 25p per pint in business rates versus about 2p for supermarkets. Wages are about 30% of the average £5 pint in a pub, versus only about 12% of a £1.50 pint in a supermarket. So, when wages rise by 10%, pub costs per pint increase by about 15p, versus 1.8p in a supermarket. In addition, supermarkets, since they pay no VAT on food sales, can in effect subsidise the price of the beer they sell. The upshot is that a pint in the supermarket, which was similar to pub prices in the old days, is now far cheaper. The British and Irish culture of drinking beer in the melting pot of the pub has been eroded by the tax system. If the public, and governments, want the unique pub culture to survive, pubs must have tax equality with supermarkets: zero VAT on food sales and much lower business rates. It makes no sense to punish pubs while favouring supermarkets. The latter are powerful businesses and pubs are relatively weak. The tax system should be neutral in its treatment of different businesses that sell the same products. I support The Telegraph’s campaign.”

Greggs Q4 like-for-like sales up 2.9%, opened four new shops per week on average in 2025: Food-to-go retailer Greggs has reported a 2.9% increase in like-for-like sales across its fourth quarter, with total sales for its 2025 financial year up 6.8% to £2.15bn. It said that market conditions remain challenging but outperformance continues with year-on-year gains in market share. Company-managed shop like-for-like sales for the year were up 2.4%. The business said: “Fourth quarter total sales were 7.4% higher than in 2024, with like-for-like sales in company-managed shops growing by 2.9%. Subdued consumer confidence continued to impact the food-to-go market, as did weather extremes earlier in the year. Against this backdrop, Greggs increased its market share of visits, including at breakfast and in the evening.” The company said it opened four new shops per week on average in 2025, totalling 207 new shops for the year. It closed 86 shops (consisting of 50 relocations and 36 closures), giving a total of 2,739 shops trading at 27 December 2025 (comprising 2,137 company-managed shops and 602 franchised units). It said it had a strong pipeline of shop opportunities, and expects to open around 120 net new shops in 2026. It opened its first three smaller-format Bitesize Greggs shops, which it said allowed the business to reach customers in high-footfall, prime locations that are constrained by space. Looking to 2026, it expects a similar rate and profile of estate growth in “carefully chosen locations”. It said that it anticipates a full year outcome in line with the board’s previous expectations. The company said that it is now past the peak of its capital expenditure programme, with the “successful completion of the ‘build phase’ of our two new distribution centres within budget”. As previously communicated, the business said that capital expenditure will reduce significantly in 2026 and further again in 2027. Roisin Currie, chief executive of Greggs, said: “We made good progress in 2025, in a challenging year where subdued consumer confidence impacted the food-to-go market. Against this backdrop, I’m pleased that Greggs outperformed the wider market and increased its market share of visits. We enter 2026 with a strong pipeline of new opportunities to make Greggs even more convenient for customers. This is underpinned by the investments we have been making in our supply chain capacity, which start to become operational this year. Our ongoing focus on efficiency allows us to deliver exceptional value to customers who are managing their budgets carefully.” The company said: “Looking into 2026 we expect the level of like-for-like cost inflation to be lower than in 2025 and are confident that we can continue to mitigate this whilst retaining our value leadership. We expect consumer confidence to remain a market headwind in the year ahead which, along with the costs of introducing our new supply chain capacity will put some temporary pressure on margins, as previously disclosed. However, our competitive position remains strong and we continue to take market share in a challenging food-to-go market. Our store opening programme will continue to drive further strong sales growth.”

Unions accuse McDonald’s of ‘repeated harassment’ against ‘mostly teenage’ staff: A group of trade unions has alleged McDonald’s has violated international labour standards by failing to tackle sexual harassment in its UK restaurants and franchises. It comes after a BBC investigation exposed a toxic culture at the fast-food chain in which workers, some as young as 17, were being groped and harassed. Last year, McDonald’s staff told the BBC that they still faced sexual abuse and harassment. The unions complained to an independent unit within the government which has now offered to intervene by mediating between the unions and McDonald’s. The fast-food chain said it was “reviewing the information and considering next steps”. The complaint from trade unions was referred to the UK National Contact Point (NCP) – an independent unit which sits with the Department for Business and Trade, run by a mix of civil servants and external advisors. After conducting an initial assessment, the UK NCP has decided the complaint merits further consideration and will now offer mediation to both parties. After the initial BBC investigation, McDonald’s apologised and set up a new unit to deal with complaints. But since then, more than 160 people have approached the BBC with allegations, while the EHRC has heard 300 reported incidents of harassment. Responding to the latest developments, a McDonald’s spokesperson said: “We are aware of the NCP’s initial assessment and continue to engage constructively with the OECD process. We are reviewing the information and considering next steps.”

Mellors Group acquires Lightwater Valley theme park from Brighton Pier Group: The Mellors Group, which created The Cube experience in partnership with Objective Media Group, has acquired the Lightwater Valley Family Adventure Park in Ripon, North Yorkshire, from Brighton Pier Group, for an undisclosed sum. The company said the acquisition marked what it describes as the beginning of an “exciting new chapter” for the attraction and pledged to inject “fresh energy, renewed enthusiasm, and significant capital into the adventure park”. The group said it has ambitious plans for the venue, including brand-new rides and attractions earmarked to launch this year. James Mellors, managing director of Mellors Group, said: “Lightwater Valley is a park with real heart, history, personality, and potential, and it’s a place our own family has loved since childhood. We’re incredibly proud to be taking on its future. Our goal is simple: to put the park back ‘on the map’ as a major theme park, by introducing new rides, injecting new energy, and creating something truly special for families for many years to come. We’re very excited about this acquisition and looking forward to planning a wide range of new attractions for 2026; fresh, fun, and full of excitement. While Lightwater Valley will continue to be a haven for younger families, we’re also widening the experience so that guests of all ages can enjoy the thrills, charm, and adventure together. The team here have done a brilliant job, and we’re looking forward to working closely with them as we begin this new journey.” First welcoming visitors in 1969, Lightwater Valley now features more than 35 rides, family adventures, character entertainment and seasonal events. Back in October the theme park was placed on the market with a £3m asking price. In November, Propel reported that the Luke Johnson-chaired Brighton Pier Group, which delisted from the London stock market last year, was actively exploring opportunities for the potential sale of some or all of its remaining assets, including its eponymous seaside tourist attraction. At the start of the month, it appointed Knight Frank to seek a buyer for the Grade II-listed Brighton Palace Pier, one of the UK’s four most visited tourist attractions, welcoming 3.9 million visitors in 2025. No guide price has been disclosed for the pier, which the company bought in 2016 for £18m.