Pubs in England will get a 15 per cent cut to business rates bills from April, and rates will be frozen for a further two years, the government has announced.
The Treasury offered this support package after campaign groups from the industry highlighted a real risk of job losses and closures in the hospitality sector.
Music venues are also to get this support, but restaurants and bars will miss out, despite facing similar challenges and soaring costs.
As business rates are devolved, this support is for pubs in England only. But Wales and Scotland will be given funding to choose how it’s distributed.
15% business rates discount for pubs
Pubs will receive three years of support to help reduce the impact of business rates changes and revaluation in April.
This support will include a 15 per cent business rates discount on bills for 2026-27.
Business rates bills will be frozen in ‘real terms’ (which means only increasing by inflation) for the 2027-28 and 2028-9 tax years.
Relief is only available for pubs that allow customers to buy drinks without a meal, meaning hotels and restaurants don’t qualify.
A response to industry backlash
Campaigners have been pressing the government on this for months, highlighting the soaring costs set to hit pubs in April as business rates increase.
Chancellor Rachel Reeves announced new business rates multipliers at the Autumn Budget in November 2025, which faced a huge backlash in the industry. And the previous 40 per cent relief for retail, hospitality, and leisure businesses is also coming to an end.
As a result, many pub owners said they expected their bills to “double or triple” with new property revaluations.
The Treasury has stepped in to help, offering a support package worth at least £80 million a year for the next three years.
The government has also started work on reforming the whole business rates system.
New High Streets Strategy
Reeves has also set out plans to restore Britain’s high streets.
Pubs are to be given extended licensing hours, including opening after midnight for Home Nations’ games towards the end of the men’s football World Cup in summer.
And a further £10 million has been announced for the Hospitality Support Fund over the next three years. This scheme has been designed to bring communities together by encouraging pubs to offer extra services, from shops and play areas to cafés.
Chancellor of the Exchequer Rachel Reeves said: “If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive.
“We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced. Thriving local businesses, bustling high streets and pride restored in our communities – that’s what this government is delivering.”
Relief – but only temporary
While the relief will provide vital breathing room for many pubs, the government has confirmed that this will only be a temporary measure. And higher business rates will come into effect for pubs in three years when this package comes to an end.
The support explicitly excludes other hospitality venues, including restaurants, cafes, theatres, and guesthouses.
A full list of eligibility criteria is on the government website.
‘Our publicans need sustained support’
Julie Fisher, UK CEO at Simply Business, comments on the Treasury’s support package for pubs: “[The] announcement from the Treasury comes at a critical moment for Britain’s pubs, and the question remains whether it goes far enough. The decline of independent high street businesses cannot be overstated and our publicans need sustained support if these vital community hubs are to survive. Our previous analysis warned that independent pubs could be gone as soon as 2035.”
“Our latest research reveals the scale of pressure they’re under – potentially losing £59 million during January as consumers cut back after the festive period, while simultaneously grappling with business rate increases and persistent inflationary pressures. With some estimates showing that one pub closed every day last year, this support package couldn’t come soon enough.”
The devil is in the detail
Kate Nicholls, Chair of UKHospitality, welcomed the announcement but said “the devil will be in the detail.”
She commented: “This emergency announcement to provide additional funding is helpful to address an acute challenge facing pubs.
“The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets. They need to see substantive solutions that genuinely reduce their costs.
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