Pubs, clubs and live music venues across England are set to receive a 20% reduction in business rates under new plans announced by Prime Minister Andy Burnham.
The cut will take effect from April 2027 and is expected to save the average pub around £1,100 during the following year, according to government estimates.
Nearly 32,000 pubs, clubs and live music venues are expected to benefit from the measure, which is intended to reduce operating costs and provide greater support for businesses that play an important role in local communities.
The government said the changes will be fully funded. This will include reviewing existing reliefs available to businesses considered to make a more limited contribution to local high streets and communities, with vape shops given as one example.
Announcing the plans, Mr Burnham said too many valued venues had disappeared from local high streets while previous governments failed to provide sufficient support.
He said the government would back the businesses people wanted to see in their communities and described pubs and local high streets as being at the heart of community life.
The announcement comes amid continued pressure on hospitality and entertainment businesses from rising staffing, energy and supply costs. Business rates have also remained a significant concern for many venue operators, particularly those occupying larger or higher-value premises.
The Federation of Small Businesses welcomed the direction of the announcement and said it was encouraged by indications that the government may also consider a significant expansion of Small Business Rate Relief at the next Budget.
For pubs, clubs and live music venues, the reduction should provide some relief from rising costs. However, the longer-term impact will depend on the detail of the reforms and whether further support for smaller businesses is introduced alongside them.
