Pubs get 15% business rates cut after landlords barred Reeves from venues

Pubs will receive relief after criticism over to business rates increases (Alamy/PA) PA Media

The Treasury has announced a 15% business rates cut for pubs and music venues in England, responding to an intensifying backlash from the industry warning of mass closures and job losses. The support package will provide relief starting in April 2026 after November's autumn budget triggered significant tax increases.

The reduction will save the average pub £1,650 next year. Treasury minister Dan Tomlinson said the government will freeze bills in real terms for the two years following 2026/27. He added: "This decision will mean that the amount of business rates paid by the pub sector as a whole will be lower in 2028/29. 'It will also apply to music venues too. Many are valued as pubs and it would not be right to draw the line.'"

The move addresses sharp warnings from industry bodies. UKHospitality and the British Beer and Pub Association had projected that without intervention, pub business rates bills would rise by an average of 15%, or £1,400, in April, climbing to 76%, or £7,000, by 2028/29.

Industry backlash

The backlash intensified after Chancellor Rachel Reeves' November budget removed a Covid-era 40% discount for hospitality, leisure and retail businesses. The changes also introduced new property valuations. Pub landlords responded by barring dozens of Labour MPs, including Reeves herself, from their establishments.

Emma McClarkin, chief executive of the BBPA, welcomed the decision: "We are pleased the Government has listened to our concerns, and those of publicans, consumers and MPs who rallied to defend our locals. 'This pub-specific package will stave off the immediate financial threat posed by accelerating business costs and will help keep the doors open for many.'"

Other hospitality businesses including hotels, restaurants and cafes will not receive additional support despite their own concerns over rising tax bills. Scotland, Wales and Northern Ireland control their own business rates, meaning this package applies to England only.

Note: This article was created with Artificial Intelligence (AI).