(ENGLAND) — The UK government rolled out a new package on January 27, 2026, giving eligible pubs and live music venues in England a 15% business rates relief in 2026-27 and setting out a plan to steady bills in the years that follow.
The relief starts in April 2026 and sits on top of Budget 2025 measures, the government said. Ministers also signalled a real-terms freeze on bills for 2027-28 and 2028-29.
For pubs, the 15% relief equates to £1,650 on average in 2026-27, with around 75% of pubs expected to see bills fall or stay flat that year. The government said the pub sector overall will pay 8% less in business rates by 2029 compared to current levels.
Business rates are a property tax charged on “rateable” business premises, and venues often treat the bill as a fixed cost that must be paid regardless of weekly takings. Operators and trade bodies have long argued that even modest shifts in rates can hit cash flow, especially for pubs and live music venues with thin margins.
Dan Tomlinson, Treasury Minister, announced the package in the House of Commons on January 27. The government framed the measures as support for community venues and part of a wider approach to high streets.
Alongside the 2026-27 relief, the government said it intends to follow with a real-terms freeze on bills for 2027-28 and 2028-29. That points to inflation-adjusted increases only in those years, rather than sharper rises.
The announcement also drew boundaries around who benefits. Other hospitality businesses, including hotels and restaurants, do not qualify for this specific relief.
Eligibility for pubs hinges on how a property operates day to day. The government said qualifying pub properties must be open to the public with free entry, except for occasional events.
Pubs must allow drinking without requiring a food purchase, and customers must buy drinks at a bar. The relief applies only to occupied properties.
Live music venues also fall within the scope of the package, reflecting what the government described as overlap with pubs and their community role. In practice, coverage rests on the use and occupation of a specific property rather than the wider business brand.
The government’s headline figures highlight how broad the relief aims to be across pubs in 2026-27. It said the measure is worth £1,650 on average for pubs that year, and around 75% of pubs are expected to see bills fall or stay flat.
An illustrative calculation set out how the new relief interacts with existing protections already embedded in the business rates system. The example uses a pub whose rateable value rises from £30,000 to £39,000 in 2026-27.
On the higher rateable value, the base bill in the example comes to £14,898. Supporting Small Business relief then caps the increase, cutting that figure to £10,329 by applying a 15% cap from the prior year.
After that cap, the new 15% relief reduces the payable amount to a final bill of £8,780. The step-by-step example shows why the final bill can differ from what rateable value changes alone might suggest.
The government will deliver the relief through local authority billing systems rather than through a separate application-based grant. It will use section 47 discretionary relief, with central reimbursement via section 31 grant.
That mechanism matters for councils because it sets out how they recover the cost of the relief. It also shapes how quickly the change appears on bills, as local authorities must apply it within their billing processes.
The government said local authorities will assess the relief daily using a set formula: relief = rateable value × 0.15. It also set an order of operations.
Mandatory reliefs apply first, including Transitional Relief and Supporting Small Business, with the new 15% relief calculated after those protections. That sequencing helps explain why the example bill falls in stages rather than in one move.
Ministers presented the 2026-27 business rates relief as one piece of a broader support package tied to the state of high streets and the role of hospitality. The government said it intends to provide bill stability via the real-terms freeze in 2027-28 and 2028-29.
The package also includes a government review of the pub business rates valuation method. Valuation methodology can shape liabilities because rateable values feed into bills, and pubs have long argued that assessments can fail to reflect trading realities.
Funding support for pubs also expands through a Hospitality Support Fund worth £10 million over three years, up from £1.5 million. The government said the fund will aid over 1,000 pubs with community services like cafes and stores, and job training.
Licensing and planning changes sit alongside the tax measures, with a focus on trading opportunities and physical expansion. The government said it will extend hours to 1am/2am for late World Cup matches.
Ministers also said they will consult on easing rules for room extensions and guest rooms without planning permission. The wider package links to a High Street Strategy covering retail, leisure and hospitality.
The move lands amid a long decline in pub numbers and ongoing arguments about fixed costs. Pub numbers have fallen nearly 7,000 (15%) since 2010, the government said, with business rates pressure among the issues raised by the sector.
Tomlinson made his Commons statement after warnings from the sector about closures and job losses without intervention. The government positioned the package as a response to those concerns while limiting this relief to pubs and live music venues.
“will stave off the immediate financial threat”
Attribution: Emma McClarkin, chief executive of British Beer and Pub Association, said it “will stave off the immediate financial threat” and keep doors open.
“short-term”
Attribution: Ash Corbett-Collins, chairman of Campaign for Real Ale, called it “short-term” and not the promised permanent lower rates.
Implementation now shifts to councils and billing systems ahead of April 2026. The government said it will issue formal guidance for local authorities shortly.
Local authorities will also need software changes to apply the new relief cleanly, the government said. For many ratepayers, the practical effect is expected to show up through adjustments, credits, or updated demand notices as councils update bills for 2026-27.
UK Govt Announces Business Rates Relief for Pubs and Live Music Venues
The UK government has introduced a 15% business rates relief for eligible pubs and live music venues in England for 2026-27. This package includes a subsequent two-year real-terms freeze on bills and a £10 million fund to support community-focused services. While industry leaders welcome the immediate financial relief, some call for permanent structural changes to the business rates system to ensure long-term sustainability for the hospitality sector.
