Oldham MP backs pubs as business rates pressure grows

Jim McMahon, MP for Oldham West, Chadderton, and Royton <i>(Image: Supplied)</i>
Jim McMahon, MP for Oldham West, Chadderton, and Royton (Image: Supplied)
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An MP has welcomed new business rates support for pubs.

Jim McMahon, who represents Oldham West, Chadderton, and Royton, called the Government’s recent announcement of a 15 per cent business rates discount for pubs a step in the right direction.

He also urged the Treasury to extend relief to other parts of the hospitality sector currently excluded from the scheme.

Mr McMahon said: "I welcome the announcement that pubs will receive a 15 per cent discount on the business rates they pay.

"It recognises what pubs mean to our communities and our economy, and the real impact of revaluation at a time when costs are squeezing every last bit of headroom needed to survive.

"But the pressures facing pubs are felt right across hospitality.

"Restaurants, hotels, clubs, leisure centres and gyms, children’s soft play centres and more are all facing rising operating costs.

"This also highlights the impractical nature of business rates themselves."

He pointed to Oldham's Egyptian Room, a social venue that operates much like a pub but is classified by the Valuation Office Agency as a 'food court and premises'.

This means it does not qualify for the discount, despite facing similar financial pressures.

Mr McMahon said: "To be clear; the valuation process is independent. Government then decides on what follows; how much business pay relative to that valuation, and what discounts, reliefs and exemptions are put in place to support priority uses and industries."

"I have urged the Treasury to look again and take this support further.

"After years of neglect under the previous government the foundations are weak, urgent cross hospitality action is needed before the shutters come down for good on our town centres.

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"This cannot be the final word on support for hospitality."

Mr McMahon also warned that the decline of hospitality venues has far-reaching consequences for high streets and communities.

He said more comprehensive action is needed to protect businesses, social connections, and economic vibrancy across Oldham and beyond.

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