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Hospitality welcomes business rates relief for pubs but calls for sector-wide support
Hospitality trade bodies have welcomed the Government’s decision to cut business rates bills for pubs, social clubs and eligible live music venues in England by 20% from April 2027, while urging ministers to extend support across the wider sector.
Announced by Prime Minister Andy Burnham on 23 July, the measure is expected to benefit nearly 32,000 venues and save a typical pub approximately £1,100 during the 2027/28 financial year. The package is worth around £100 million annually.
The additional discount will not apply to other hospitality businesses, including restaurants, cafés and hotels. This has prompted calls for the autumn Budget to deliver broader reform for businesses facing many of the same cost and tax pressures.
The relief will come on top of existing support for pubs and live music venues, including the 15% relief announced for 2026/27 and the decision to freeze their bills in real terms for a further two years.
Full eligibility criteria are expected to be announced at the Budget. The Government has already confirmed that the largest live music venues will not qualify for the new discount.
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.”
UKHospitality calls for support across the sector
UKHospitality welcomed the measure as a positive first step but stressed that qualifying venues account for only a portion of hospitality employment.
Allen Simpson, Chief Executive of UKHospitality, said: “This is good news and a welcome first step from a Government that understand the value of hospitality to jobs, growth and local communities.
“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.”
Pub sector welcomes “sorely needed” discount
BII CEO Steve Alton said: “Our members, operating independent pubs at the heart of their communities in towns and high streets across the UK, will be encouraged by this initial step taken by the new Prime Minister in his first few days in office. The recognition he has given to the vital role that pubs play in local economies, local employment and the huge social value they bring to their communities is welcome.
“However, even with this additional 20% discount on current bill levels, we now need to see a significant change to the cumulative taxation faced by our sector, to allow our nations’ pubs to have the ability to grow and reach their full potential.
“In order for pubs to be able to support local employment growth, particularly for young people beginning their careers, we need to see significant change to the overall tax burden they face. Our members have been clear and consistent in their calls for an urgent need to reduce their cumulative tax bill with a priority of a fair deal of VAT at 10% on all pub sales.”
The British Beer and Pub Association welcomed the immediate support for pubs following its engagement with Burnham’s team, while calling for permanent reform of the business rates system.
Emma McClarkin, CEO of the British Beer and Pub Association, said: “For years and years, pubs have paid a disproportionately higher rate which has ground down their ability to keep the doors open, so we're delighted that after working with Andy Burnham’s team prior to his election as Labour Party leader, he has swiftly acted on our concerns and provided new backing to our nation’s pubs as he promised.
"The local has and always will be more than just a place to get a pint; it creates jobs, it's our nation's living room, it's the anchor of the high street, so this sorely needed discount will be celebrated by pubs up and down the country.
"We now look forward to working with Government to deliver permanent business rates reform so we can keep the pub in its rightful place; at the heart of our communities."
Clubs and live music venues seek clarity
The Night Time Industries Association highlighted the significance of clubs being included alongside pubs and live music venues, but said further detail was needed about the scope of the scheme.
Michael Kill, CEO of the Night Time Industries Association, said: “The announcement of a 20% business-rates reduction across England from April next year is a significant and welcome intervention. With a typical pub expected to save around £1,100 annually, and the Government committing approximately £100 million a year to the policy, this has the potential to provide meaningful relief to businesses facing sustained cost pressures.
“We are still awaiting the full details and eligibility criteria, which are expected to be announced at the autumn Budget. We will also seek clarity on the proposed exclusion of the largest live-music venues and continue to press for the final scheme to provide the broadest possible support.”
The Government has said it will return to its commitment to reform the wider business rates system at the Budget, including Small Business Rates Relief.
For restaurants, cafés, hotels and other hospitality businesses excluded from the new discount, attention will now turn to whether that reform produces a more comprehensive package of support across the sector.
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