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Additional business rates support announced for pubs

Author: ICAEW Insights

Published: 28 Jan 2026

The government estimates that the average pub in England will save £1,650 in business rates in 2026-27 as a result of measures announced on 27 January 2026.

The package of measures announced by the government includes the following support for pubs and live music venues in England: 

  • A 15% discount on rates bills in 2026-27. This will be given in addition to any other reliefs the business is eligible for, such as transitional relief or supporting small business relief.
  • A two-year, real-terms freeze in business rates bills starting in April 2027. This means that business rates bills will rise by no more than inflation in 2027-28 and 2028-29. 

The benefits of these changes are illustrated by the example below, which is based on guidance published by the government.  

Example

 A pub which previously had a rateable value of £30,000 sees it increase to £39,000 from 1 April 2026. Its business rates liability is calculated as follows: 

  2025-26 2026-27 2027-28
Rateable value £30,000 (A) £39,000 (A) £39,000
Multiplier 49.9p (B) 38.2p (B)  
Rates before reliefs (A x B) £14,970 £14,898  
Less: 40% discount (£5,988)    
2025-26 liability £8,982 (C)    
Supporting small business scheme: Increase capped to 15%: £8,982 (C) x 1.15 =   £10,329  
Less: 15% pub/live music venue discount   (£1,549)  
2026–27 liability   £8,780 (D)  
2027–28 liability (D + inflation*)     £8,956

*Assume CPI = 2% 

Businesses in England can use a tool to estimate what their rates liabilities will be in 2026-27. 

The announcement defines pubs and live music venues for these purposes, but local authorities should consider broader factors where eligibility is unclear. 

Future changes

The government is also launching a review into the way that pubs are valued for business rates purposes, with any changes in place for the next revaluation cycle in 2029. 

In addition, a ‘High Streets Strategy’ will be launched later this year to determine what further support can be provided. This is alongside a future consultation on loosening planning rules to allow pubs to add guest rooms or make other improvements to their premises without needing local authority approval. A further £8.5m will also be added to the Hospitality Support Fund, supporting pubs to provide additional services such as community cafes, village stores and play areas. 

Scotland and Wales 

As business rates is devolved, the changes apply to England only. However, the government says that the devolved administrations will be given additional funds to “allocate according to their priorities”. The Scottish and Welsh governments both recently pledged to explore additional support for pubs once the UK government had confirmed its position. 

Other measures 

As part of further licencing reforms, pubs and other licensed venues will be able to open after midnight for home nations’ games in the later stages of this summer’s Men’s FIFA World Cup. The government is also bringing forward a consultation to allow them to open late for other big events, such as Eurovision. 

 

Further information 

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