The UK government has introduced a targeted business rates support package for pubs in England in a bid to ease financial pressures on the sector and respond to industry warnings about closures and job losses.
The package, announced by the Treasury on 27 January 2026, includes a 15 % reduction in new business rates bills from April and a freeze on bills in real terms for the following two years, alongside a review of how pubs are valued for tax purposes.
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Live music venues that share characteristics with pubs will also benefit from these measures.
Pub sector business rates relief details
Under the new support measures, around 75 % of pubs in England are expected to see their business rates bills either fall or remain unchanged in the coming year, with an average saving of about £1,650 per establishment.
The initiative forms part of a broader response to concerns raised by industry groups about the impact of rising property tax bills, the phase-out of pandemic era discounts, and the effects of recent revaluations.
The relief will be in place for three years while the government conducts a review of the valuation methodology used to calculate business rates for pubs.
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By GlobalDataGovernment to publish high street strategy
Alongside the business rates support for pubs, the government said it will publish a High Street Strategy later in 2026 aimed at helping retail, leisure and hospitality businesses navigate ongoing cost challenges.
Officials have acknowledged that nearly 7,000 pubs have closed since 2010, underscoring long-term pressures on the sector from changing consumer behaviour, energy cost increases and wider economic factors.
The valuation review, which will involve industry and valuation experts, is expected to inform changes ahead of the next revaluation in 2029.
Industry response and broader hospitality context
The support package has received a mixed response from business groups. Some hospitality bodies welcomed the targeted relief for pubs and certain live music venues as a necessary short-term measure.
Others criticised the limited scope of the package, noting that restaurants, cafés, hotels and other licensed premises did not qualify for the relief despite facing similar cost pressures.
Trade associations and chambers of commerce have reiterated calls for more comprehensive business rates reform and wider relief mechanisms to support investment and high street vitality across the retail and hospitality sectors.
