The Prime Minister has announced a 20% cut to business rates bills for pubs, social clubs and live music venues across England, in a move designed to ease pressure on hospitality businesses and support high streets.
The change will take effect from April next year and is expected to save the typical pub around £1,100 in the next financial year.
The announcement affects nearly 32,000 venues and comes on top of existing support for the sector, including a 15% relief announced earlier this year for the 2026/27 bill.
The government says the measure is intended to help businesses invest, grow and create jobs, while strengthening the role of pubs and music venues in local communities.
What the policy means
Under the new plan, pubs, clubs and live music venues will receive a 20% reduction in their business rates bills from 2027/28.
The government says the policy is aimed at supporting the “backbone of local high streets” and giving hospitality operators more certainty at a time when costs remain high.
Officials also said the biggest live music venues will not be eligible for the new discount, with further details to be set out at the Budget.
The relief is being positioned as targeted support rather than a universal cut across all commercial properties.
How it will be funded
The government says the change will be fully funded through a review of business rates reliefs for businesses that do not, in its view, make a positive contribution to local communities, including vape shops.
It also forms part of a wider package of measures aimed at lowering living costs and supporting working people.
That wider package includes electricity bill VAT relief and the £2 bus fare cap, according to the press release. The government argues the combined measures are designed to back growth while helping household budgets and local economies.
Pubs and live music venues have faced sustained financial pressure in recent years, from higher energy bills to rising staffing and operating costs.
By cutting rates, the government is hoping to give businesses more room to breathe and encourage reinvestment in hospitality and entertainment spaces.
