Business rates for pubs, clubs, and music venues to be cut by 20%
The Prime Minister has announced that business rates for pubs, clubs, and music venues across England will be cut by 20% from April 2027.
The Government said that this change could save the typical pub an estimated £1,100 next year.
The changes will be fully funded, including through reviewing reliefs for businesses that the Government said “do not make a positive contribution to local communities”, such as vape shops.
The Government said it will also crack down on businesses that sell through online marketplaces, but do not comply with their tax obligations.
The Prime Minister Andy Burnham said: “For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
“This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”
Allen Simpson, chief executive of trade body UKHospitality, said the move was a “welcome first step”, but called on the Government to commit to wider business reform to support the hospitality sector as a whole:
“The Prime Minister is right to say this should be just the start. Restaurants are struggling just as much as pubs, while hotels are due to see their business rates bills increase by an average of 110%, the highest in the sector.
“After years of rising costs and tax increases that have hit investment and employment, the industry now needs a meaningful, sector-wide solution. While today’s announcement will provide welcome support for pubs, clubs and live music venues, they only account for around a fifth of hospitality jobs. The rest of the sector now needs to see the same ambition.
“We look forward to working with the Government at the forthcoming Budget to deliver the wider businesses rates reform it has promised and create a fairer system that enables businesses to invest, create jobs and grow.”