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Pubs and music venues will be given a 15 per cent discount on their business rates bills from April 2026.
This will be followed by a two-year real-terms freeze.
The announcement comes from Treasury Minister, Dan Tomlinson, who said the measure is worth £1,650 for each pub. Around 75 per cent of pubs will see bills fall or stay the same, according to the government.
A review into how these firms’ business rates are valued is on the cards, too.
The measures follow a major backlash at last year’s Autumn Budget. Over a thousand pubs banned Labour MPs from entering their premises.
UK Hospitality’s chair, Kate Nicholls, said the measures “address an acute challenge facing pubs.
“The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets”.
Joe Phelan, money.co.uk business savings expert, said: “This support is a welcome recognition of the crisis facing pubs and music venues. More than 350 pubs closed across England and Wales last year, while over half of grassroots music venues are now operating at a loss – and with more than 2,000 pubs having closed in the last five years alone, the scale of the challenge is undeniable.
“The 15 per cent business rates discount from April, followed by a two-year freeze in real terms, will provide crucial breathing room for businesses that have been stretched to breaking point. This matters not just for venue owners, but for communities across the country who rely on these spaces, and for the millions of people they employ.
“However, without clarity on long-term support, we risk more closures. These businesses want to invest, create jobs and serve their communities, but they need sustained certainty to do so, not just short-term relief.”
Federation of Small Businesses (FSB) policy chair, Tina McKenzie, worries about other high street businesses: “The government has the power to apply the full business rates relief already built into the system across the sectors, yet it has used this moment to exclude wider hospitality, retail and leisure. It also has the opportunity to raise significant extra revenue from the largest business premises, but has instead decided to impose the biggest increases on small high street bakers, gyms and restaurants.
“With more cost pressures due to hit in April alongside the rates rise – from energy standing charges to employment costs – this situation is becoming unsustainable for many. Some are having to put the brakes on expanding and developing their business, while others are being forced to lay off staff or even close their doors for good. The Treasury must look again at the Spring Forecast to provide substantial help for these struggling small firms.”
An increased £10 million in funding was announced for the Hospitality Support Fund over three years. That’s up from the £1.5 million for one year that Reeves pledged in April 2025. This funding is intended to help over 1,000 pubs to provide extra services for communities, including community cafés, village shops and play areas.
Read more
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