Pubs, clubs and live music venues in England will get a 20% cut to business rates from April, with the government estimating the move will save firms around £1,100 next year. The cut is expected to benefit almost 32,000 venues, and will cost £100m, funded by a review of tax relief on firms such as vape shops that the government said “do not make a positive contribution to local communities”.
The announcement came as Andy Burnham made his third policy announcement since becoming prime minister. He said:
“For too long, governments have stood by while cherished venues have disappeared from our local high streets.”
How will the cut be paid for?
The government said the cost of the rate cut will be covered by reviewing tax relief on firms such as vape shops, and by cracking down on businesses selling through online marketplaces which “do not comply with their tax obligations”. It said the move would also be part of broader efforts to give businesses “breathing space”.
The 20% business rates discount will not apply to the “very largest” live music venues. Details about which businesses are eligible will be announced at Chancellor John Healey's first Budget in the autumn.
What is the reaction from the hospitality sector?
Hospitality bosses welcomed the support, but some pub owners said the package would not go far enough to offset the impact of cost increases elsewhere. Iain Hoskins, who owns Ma Pub Group in Liverpool, told the BBC the relief would help
“chip away”at rising costs but questioned how many venues would benefit.
He said it could be
“very meaningful”, but added
“as always, the devil is in the detail”. Hoskins said his pubs had previously missed out on government business rates support, and that
“the increases were so huge last year that now we're sort of chipping away at some of those increases”.
Steve Perez, founder of soft drinks company Global Brands and an owner of two hotels, said the announcement is
“welcome… but this won't make any material difference to any pub”.
UK Hospitality's chief executive, Allen Simpson, said Burnham's plans are
“a good start”and
“suggests that his affection for hospitality has survived the trip down the M1”. He added that it is
“not for everybody in hospitality”.
What has changed in business rates support?
Under previous chancellor Rachel Reeves, the government said last year it would scale back business rate discounts that had been in force since the pandemic and announced that there would be no discount at all from April this year. That, combined with big upward adjustments to rateable values of pub premises, left landlords facing much higher rates bills.
Following criticism from the hospitality industry, the government cut business rates for pubs and music venues by 15% earlier in 2026. The 20% discount will apply on top of the existing support.
What other measures has the government announced?
On Tuesday, the government announced a cut of 5% VAT on electricity bills, followed by capping bus fares at £2 in England outside London. The business rates change for some hospitality firms is the latest move in Burnham's effort to provide support for people and businesses.
The Night Time Industries Association's chief executive, Michael Kill, said the tax break could provide
“meaningful relief to businesses facing sustained cost pressures”. He said the sector is waiting for more details, while questions remain about the exclusion of the largest live music venues.
The Federation of Small Businesses (FSB) said Thursday's announcement must be
“a downpayment on action that reaches across the small business community”. FSB policy chief Tina McKenzie said the plans were encouraging and fix the damage caused by past business rates decisions which are
“holding back small business growth and jobs in every postcode”.
Key Facts
- Pubs, clubs and live music venues in England will get a 20% business rates cut from April.
- The government estimates firms will save around £1,100 next year.
- The cut will cost £100m and be funded by a review of tax relief on firms such as vape shops.
- Almost 32,000 venues are expected to benefit.
- The 20% discount will not apply to the “very largest” live music venues.
