- Pubs, clubs and live music venues set to receive a 20% cut to
their business rates bills saving the typical pub an estimated
£1,100 next year
- Measures to support the backbone of local high streets,
including through reviewing reliefs provided to anti-social
businesses, such as vape shops
- Forms part of a series of measures to cut costs for working
people and communities, including electricity bill VAT relief and
£2 bus fare cap
Continuing his drive to build an economy that works for every
postcode, the Prime Minister has taken action to cut business
rates bills for pubs, social clubs and live music venues across
England from April next year.
For too long, the pubs, social clubs, and live music venues that
form the backbone of local high streets have been replaced by
boarded up windows and for sale signs.
Today's announcement forms part of the Government's wider plan to
drive good growth in every postcode by reducing the burden on
local businesses, boosting investment on high streets and helping
communities to thrive.
New business rate cuts will benefit nearly 32,000 pubs, clubs and
live music venues, saving the typical pub an estimated £1,100 in
the next financial year, providing much-needed certainty for
businesses looking to invest, grow and create jobs.
Today's changes will be fully funded, including through reviewing
reliefs for businesses that do not make a positive contribution
to local communities, such as vape shops.
The Government will also crack down on businesses that sell
through online marketplaces but do not comply with their tax
obligations, putting them at an unfair advantage over businesses
that play by the rules.
The Government is consulting on measures to make online
marketplaces more responsible for preventing non-compliant
sellers from avoiding their tax obligations and further detail
will be set out in due course. Revenue raised from these reforms
will be reinvested in improvements to the business rates system.
Prime Minister Andy 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.
Chancellor of the Exchequer said:
Pubs, clubs and live music venues are at the heart of
communities across the UK. They help make a place what we love.
They bring people together, support local jobs and help keep high
streets and town centres busy which is why we will back them all
the way.
We are determined to bring hope back, give businesses the
support they need and generate growth in every postcode.
This is just one step of the Government's plans to back our
communities and high streets and we will return to our commitment
to reform the wider business rates system, including Small
Business Rates Relief, at the Budget.
Notes to editors
- The consultation on extending VAT online marketplace
liability to combat non-compliance can be found here: Extending VAT online
marketplace liability to combat non-compliance - GOV.UK
- This package of support is worth around £100 million a year.
- This government has already begun the work to reform the
business rates system throughout this Parliament. At Budget 2025,
announced a permanent 5p
cut in the business rates multipliers for over 750,000 retail,
hospitality and leisure properties, funded by a higher
multiplier for the most expensive 1% of properties.
- At the same time, the government announced £4.3 billion of
support to help keep bills down for those seeing increases in
their rateable values at the revaluation. This meant capping bill
increases at 15% for most businesses from April earlier this
year, or £800 for the smallest, as pandemic-era reliefs came to
an end and new revaluations took effect.
- In recognition of the pressures pubs and live music venues
have been under in recent years, a 15% relief off their 2026/27
bill was announced in January, with bills frozen in real terms
for a further two years. The additional 20% cut for pubs, clubs
and live music venues from 2027/28 comes on top of this existing
support.
- To target support where it is most needed, the government
will not be making the new 20% discount available to the very
largest live music venues, details will be set out at the Budget.