Government Announces 15% Business Rates Discount for Pubs and Music Venues
On Tuesday 27th January, the Government announced a support package for pubs and music venues across England, introducing a 15% discount on business rates alongside a two-year freeze on rates bills from 1 April.
The U-turn follows pressure from hospitality trade bodies, industry groups and MPs after the 2026 rating list revealed significant increases in business rates for hospitality properties.
Despite the introduction of the reduced Retail, Hospitality and Leisure (RHL) multipliers, many hospitality businesses remain exposed to steep rises, with pubs being one of the most affected. UKHospitality has warned that pubs could face increases in their business rates liabilities of up to 76% under the 2026 rating list.
Treasury Minister Dan Tomlinson confirmed the measures on Tuesday (27 January), stating that the discount would apply to pubs, with music venues also included.
“Pubs are the cornerstone of so many communities,” said Tomlinson. “They are essential to the social and cultural life of so many places across the country.”
The Government estimates the package will save the average pub or music venue approximately £1,650 over the next year, with around three-quarters of pubs expected to see their rates fall or remain unchanged.
Alongside the discount, the Government also announced a review into how pubs are valuated, explore potential increases to permitted trading hours, and consider easing planning regulations to allow pubs greater flexibility to expand their premises.
£10 million of funding for the Hospitality Support Fund over three years has also been announced, aimed to assist over 1,000 pubs provide extra services for local communities to establish community cafes, village stores and play areas.
Industry response
UKHospitality, the leading trade body for the hospitality sector, welcomed the recognition of the challenges facing pubs, but warned that further action is required to support the wider industry.
Kate Nicholls, Chair of UKHospitality, says the devil will be in the detail.
“While this is a welcome step for pubs and music venues, the reality remains that restaurants and hotels continue to face severe cost pressures following successive Budgets.”
“They need substantive solutions that genuinely reduce their costs. Without that action, businesses will face increasingly difficult decisions on viability, jobs and prices for consumers.”
Yet MPs of the opposition aren’t so welcoming to the temporary support. Sir Mel Stride, Conservative MP and Shadow Exchequer responded to Mr Tomlinson’s announcement by asking “Is that it?” while the Liberal Democrats called this move a “half-hearted U-turn”.
Sir Mel Stride continued by saying “After all this time, after weeks of telling our local pubs that help was on the way, this is all they get – a temporary sticking plaster that will only delay the pain for a few, while thousands of businesses despair as their bills skyrocket.”
RVA Surveyors Responds
“This is clearly a move in the right direction” says Josh Leyland, Senior Business Rates Manager of RVA Surveyors, “but for many operators it will feel more like a short-term sticking plaster than a lasting solution.”
“Cost inflation across staffing, energy and supply chains is still running well ahead of historic levels” Leyland continues. “An average saving of £1,650 is unlikely, on its own, to meaningfully relieve the pressures that are already leading to closures and financial strain across the pub sector.”
However, Leyland welcomes the Government’s potential plans to review permitted opening hours to help pubs and music venues increase footfall, while cautioning that this must “lead to real financial benefit, not just bigger bills once the doors finally close.”
Anthony Hughes, Managing Director of RVA Surveyors says, “Whilst it is good news that the treasury has sought to rectify the issue of significant increases, this support is not wide reaching enough and leaves many within the Retail, Hospitality and Leisure sector facing significant increases from April 1st, 2026.”
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