Government to water down business rate rise for pubs: The government is poised to announce a climbdown on forthcoming increases to the business rates bill faced by pubs. BBC News reports that in the coming days, the government is expected to say it will make changes to how pubs’ business rates are calculated, resulting in smaller rises to bills. Treasury officials say they have recognised the financial difficulties facing many pubs after sharp rises in the rateable value of their premises. The move follows pressure from landlords and industry groups that included more than 1,000 pubs banning Labour MPs from their premises. The government is expected to reduce the “multiplier” – the percentage of a pub’s rateable value used to calculate business rates bills. At the budget, the chancellor announced plans to scale back business rate discounts that have been in force since the pandemic from 75% to 40%, and said there would be no discount at all from April. But ministers have told The Independent that the chancellor Rachel Reeves is now expected to row back on her plans, with one saying: “There’s going to be a U-turn on pubs.” Another said that the changes were “politically unsustainable” in a year where the elections in May could decide whether Sir Keir survives as Labour leader and prime minister. Earlier today, Pat McFadden, the work and pensions secretary, signalled that the government was listening to calls for an about turn on business rates. The MP, who is known to be close with prime minister Sir Keir Starmer, insisted the government was “talking to the pub industry” about its worries. Speaking on BBC Radio 4’s Today programme, he refused to rule out changes to the property tax system when pressed on the issue twice. He also stressed that Labour wanted “to help pubs”. He told said: “Let me just explain to listeners there are three different things happening with pubs right now: the actual rates that are charged, those levels have been reduced, but at the same time there’s been a revaluation which has pushed up bills, and some of the covid support that was put in place a few years ago has been withdrawn. Left with no action from the government, the combined effect of all of those three things would be a very steep increase in the bills for pubs.” He said that the government “saw that coming” and put in place a £4.3bn transitional relief fund. He said: “Now, since we did that, pubs, the trade association, pub owners themselves, have said that’s not enough, you must understand our difficulties. We appreciate how important the pub industry is economically and culturally to the UK, so we’ll keep talking to the pub industry. We really value the role of the pub in British life. We want to help pubs.” Pressed on whether this meant the government planned to U-turn on withdrawing the covid-era tax breaks, McFadden replied: “I’m not going to predict anything, but I do say to your listeners, we do appreciate the role of the pub in British life, it is something we value. Believe it or not, we’re human beings as well as politicians, so we understand the role that pubs play.”

Soho House deal under threat after key investor pulls back from funding commitment: Shares in Soho House fell by up to 14% in early trading in the US after a key investor pulled back from its $200m funding commitment for the company’s planned $2.7bn deal to go private. MCR, the hotel owner-operator that agreed last August to help take Soho House private, informed deal partners that it wouldn’t be able to deliver its $200m equity commitment by the expected closing date. Billionaire Ron Burkle’s Yucaipa Companies, which controls Soho House, is now understood to be looking to find replacement financing from MCR affiliates and other parties. “On January 5, 2026, MCR informed Yucaipa that it will not be able to fund its Closing Commitment in full at or prior to the currently anticipated Closing date,” said the filing from Soho House. The funding was intended to help finance the $9 per share privatisation deal announced last August. MCR was a cornerstone investor, with chief executive Tyler Morse slated to join Soho House’s board as vice chairman. The funding gap puts the deal at risk unless Soho House’s parent company and backers can secure substitute financing on short notice. Under the August agreement, MCR committed to buy $200m in shares at $9 per share, an 83% premium to the stock price before the deal was announced. Soho House said it will proceed with a shareholder vote on the merger scheduled for tomorrow (Friday, 9 January). The company and its partners “intend to close the merger as soon as possible” after meeting all conditions, according to the filing. But they did not “guarantee” that the replacement funding needed for the deal would materialize. The setback creates uncertainty around the financing structure of the transaction, which would take the private members’ club operator off the public markets.