Business Rates Relief Boost for Pubs, Clubs and Live Music Venues from 2027

Good news is on the way for England's hospitality and entertainment sector. The government has confirmed a 20% cut to business ratesThe tax most non-residential properties in England pay to their local council, similar to council tax but for shops, offices, warehouses and other business premises. bills for pubs, social clubs and live music venues, taking effect from April 2027. The move is expected to benefit around 32,000 venues, with the average pub set to save roughly £1,100 in the coming financial year.

A high-street rescue package

The announcement, made on 23 July 2026, is being framed as part of a wider push to revive struggling high streets, where many long-standing venues have closed in recent years. Officials say the changes aim to give business owners more certainty to invest, expand and create jobs, rather than simply survive.

Stacking on top of relief already in place

Importantly, this new discount builds on relief already in place. A 15% reduction on 2026/27 bills was introduced earlier this year, alongside a two-year real-terms freeze, meaning many venues will see cumulative support well beyond the headline 20% figure once the new measure kicks in.

How the £100m package is funded

Funding for the package, valued at around £100 million annually, will come partly from reviewing reliefs currently available to businesses considered less beneficial to local communities, such as vape shops. The government has also signalled plans to tighten tax compliance for sellers operating through online marketplaces, with a consultation already underway and further detail expected at the next Budget.

The largest venues miss out

One caveat worth noting for larger operators: the very largest live music venues will not qualify for the new 20% discount, though exact thresholds are still to be confirmed.

Part of a broader pattern of reform

This latest step follows other recent reforms, including a permanent 5p cut to the business rates multiplierThe pence-in-the-pound rate the government sets each year. Your rates bill is roughly Rateable Value × multiplier, before any reliefs are applied. for over 750,000 retail, hospitality and leisureA separate discount for qualifying shops, pubs, restaurants, cafés, gyms and similar businesses, on top of or instead of Small Business Rate Relief depending on your circumstances. properties, and a cap on bill increases following the last revaluationThe periodic exercise where the VOA updates every property's Rateable Value to reflect current rents. The most recent revaluation took effect 1 April 2026.. Ministers have indicated that broader reform of the business rates system, including Small Business Rates ReliefA discount for smaller properties. Below a certain Rateable Value you pay nothing at all; above that there's a sliding-scale ('tapered') discount up to a higher threshold., will be addressed at the upcoming Budget.

What this means for you

For pub, club and venue owners trying to plan ahead, these changes could meaningfully affect cash flow from 2027 onward. As always, checking your current rateable valueThe official estimate of a property's annual rental value on a fixed valuation date. Your rates bill is based on this figure, not on what you actually pay in rent. and understanding how these reliefs apply to your specific property remains the best way to prepare for what's coming. Business Rate Checker can show you how your property compares to similar premises nearby, free, in about two minutes.