The new business rates cut for pubs, clubs, and music venues in England delivers a 20% discount, but critics argue it is only a small move. Announced as part of a £100m aid package, the measure aims to support the high street and ease cost of living pressures. Prime Minister Andy Burnham stated the relief would be fully funded, including through a review of relief for businesses like vape shops that are deemed not to make a positive contribution to communities.
What the Business Rates Cut Means for Venues
Almost 32,000 pubs, clubs, and live music venues in England will benefit from the discount. The typical pub is expected to save an estimated £1,100 in the next financial year. However, the relief is targeted, meaning the largest live music venues are excluded. This builds on the 15% business rates relief for pubs and live music venues announced by Rachel Reeves earlier this year, as Covid-era relief ended and new revaluations took effect, with bills frozen in real terms for a further two years.
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Critics Question the Scale of the Intervention
While hospitality leaders welcomed the tax cut, some questioned its scale and raised concerns that businesses such as hotels and restaurants had been left out. Conservative leader Kemi Badenoch said Burnham’s early policy announcement had left her thinking: “Is that it?” The prime minister defended the move, saying, “For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.”
Comparison of Business Rates Relief: 2025 vs. 2026
| Year | Relief Type | Discount Level | Eligible Venues |
|---|---|---|---|
| 2025 | Covid-era relief ended | 15% (for pubs and live music venues) | Pubs, live music venues |
| 2026 | New 20% discount | 20% (for pubs, clubs, live music venues) | Pubs, clubs, live music venues (excluding largest) |
Key Takeaways from the Announcement
- 20% discount on business rates for pubs, clubs, and live music venues in England.
- Estimated savings of £1,100 per typical pub in the next financial year.
- Relief is part of a broader £100m aid package funded by reviewing relief for vape shops and other non-contributing businesses.
- Largest live music venues are excluded from the discount.
- Critics, including political opponents and some hospitality leaders, call the move insufficient.
FAQ
FAQ
Which businesses are eligible for the new business rates cut?
Pubs, clubs, and live music venues in England will receive a 20% discount on their business rates bills, provided they are not among the largest live music venues.
How much will the average pub save?
A typical pub is expected to save around £1,100 in the next financial year under this new business rates relief.
Why are critics calling this a small move?
Critics, including Conservative leader Kemi Badenoch and some hospitality leaders, argue that the 20% discount is limited in scope and excludes hotels and restaurants. They question whether £100m is enough to meaningfully support the high street amid ongoing cost of living pressures.
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