The Treasury has announced a support package worth more than £80m a year for pubs and live music venues in England, following a fierce backlash against planned business rates reforms. The package, expected to total over £100m annually when including additional funding for Scotland and Wales, aims to mitigate the financial impact of the rates shake-up announced in the November budget.
Trade bodies had warned that Chancellor Rachel Reeves' changes would trigger widespread closures and job losses in the hospitality sector. The government admitted it had not foreseen the total financial impact of the reforms, leading to the new support measures. From 1 April, pubs in England will receive a 15% discount on their new business rates bill, with bills then frozen in real terms for two years. Three-quarters of pubs are expected to see their rates fall or stay the same next year.
The relief applies only to pubs where customers can buy drinks without eating, excluding hotels and restaurants. Local authorities will adjudicate on borderline cases. The government will also review the methodology for calculating pub rates over the three-year period. Additionally, licensing rules will be relaxed to allow extended hours during the men's football World Cup and make it easier to expand premises.
While some industry figures gave a cautious welcome, several trade bodies criticised the measures as insufficient. The British Beer and Pub Association's chief executive, Emma McClarkin, said the relief would provide certainty but called for long-term reform. Camra described the temporary measure as 'shortsighted', and a group of landlords who have banned Labour MPs from their pubs said the relief did not go far enough, vowing to maintain the ban.
The hospitality sector faces intense pressure from rising wages, energy bills, and inflation. Last year, one pub a day closed permanently in England and Wales, with the total number of pubs falling to 38,623 in 2025 from 39,989 a year earlier. The government has not reduced VAT on beer, spirits, or wine, a key industry demand.
