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HeadlineGovernment Gives Pubs a Support Package After Business Rates Backlash

Short HeadlinePubs Given Business Rates Relief After Backlash

StandfirstThe government has announced a three-year support package for pubs in England following warnings that rising business rates could force venues to close.

Pubs and live music venues in England will receive a new support package from April after months of concern that rising business rates would push more venues towards closure.

The government has announced a 15% discount on business rates bills for pubs, alongside a freeze on increases for the next two years.

Treasury Minister Dan Tomlinson said the three-year package would be worth around £1,650 for the average pub. The measures follow a backlash after November’s Budget, when many pubs discovered they were facing steep increases in their business rates from April.

Business rates are a property tax paid by occupiers of non-residential buildings, based on the estimated rental value of the premises.

Pubs are often particularly exposed because they occupy large properties in central locations, even when their profit margins are relatively small.

Industry groups warned that the combined effect of higher rates, rising wages, energy costs and food prices would be difficult for many venues to absorb.

City News spoke with Mike Lazzarati from the Crudough in Islington. He said: “We’ve been noticing more pubs shutting down, especially after the pandemic, but we welcome any relief that could keep the industry afloat.”

UK Hospitality, which represents pubs, restaurants and hotels, said the sector was at risk of further closures without additional government intervention.

The issue gained political attention in the weeks following the Budget.

Earlier this month, Chancellor Rachel Reeves said she was “particularly concerned” about the impact of business rates on pubs and hinted that further support was being considered.

Under the new package, pubs and qualifying live music venues will receive a 15% discount on their business rates bills from April 2026.

Bills will then be frozen in real terms for the following two years, meaning they will only rise in line with inflation.

The government said the package would cost £80m in its first year, with the Office for Budget Responsibility set to assess the value of the relief over the remaining two years.

The Treasury has also committed to reviewing how pubs are valued by the Valuation Office Agency ahead of the next revaluation in 2029.

The British Beer and Pub Association said, “The measures would help with the immediate financial threat facing many landlords.”

However, criticism has come from both opposition parties and parts of the hospitality sector.

Shadow Chancellor Mel Stride dismissed the announcement, arguing it would only delay rising costs rather than address the underlying problems with the business rates system.

Liberal Democrat Treasury spokesperson Daisy Cooper said, “The relief still left pubs facing higher bills overall and did not extend to other high street businesses.”

She called for wider discounts for retail, hospitality and leisure businesses, as well as a temporary VAT cut for the sector.

UK Hospitality welcomed the package but said it only addressed part of the problem.

While pubs would benefit from the relief, restaurants and hotels remain exposed to rising business rates without equivalent support.