The Treasury has unveiled a support package worth at least £80 million a year for pubs and live music venues in England, following a fierce backlash against plans to overhaul business rates. The move comes after Chancellor Rachel Reeves faced criticism from trade bodies who warned that changes announced in the November budget would lead to widespread closures and job losses in the hospitality sector.
Under the new measures, pubs in England will receive a 15% discount on their new business rates bill from 1 April, with bills then frozen in real terms for a further two years. The Exchequer Secretary to the Treasury, Dan Tomlinson, said this would save the average pub £1,650 each. The relief will only apply to pubs where customers can buy drinks without eating, and will not extend to hotels or retailers.
While some industry figures gave the U-turn a cautious welcome, several trade bodies warned the measures did not go far enough. Emma McClarkin, chief executive of the British Beer and Pub Association, said the relief would provide certainty for tens of thousands of pubs but called for long-term reform. The Campaign for Real Ale (Camra) described the temporary measure as 'shortsighted', noting it would not save pubs facing closure.
The government has also pledged to review the methodology used to calculate pub rates over the three-year period, amid claims the industry is unfairly penalised. Additionally, it will allow extended hours during the latter stages of this year's men's football World Cup and make it easier for pubs to expand their premises. However, it will not reduce VAT on alcoholic drinks, a key industry demand.
The hospitality sector continues to face intense financial pressure from rising wages, energy costs, and inflation. Analysis by the tax specialist company Ryan found that one pub a day closed permanently in England and Wales last year, with the total number of pubs falling to 38,623 in 2025 from 39,989 a year earlier.
