The UK government has announced a 20% business rates cut for pubs, social clubs and live music venues in England from April 2027 as part of a package valued at around GBP 100 million a year, alongside measures to tackle tax non-compliance through online marketplaces.
The UK government has announced a 20% reduction in business rates bills for pubs, social clubs and live music venues across England from April 2027, a move expected to benefit nearly 32,000 venues and save the typical pub an estimated GBP 1,100 in the next financial year.
The measures, announced on 23 July by the Prime Minister’s Office, HM Treasury and the Department for Business, Innovation, Science and Trade, form part of the government’s programme to support local high streets and encourage investment by reducing costs for businesses. The package is valued at around GBP 100 million a year.
The government said the new relief will be fully funded, including through a review of business rates reliefs available to businesses that “do not make a positive contribution to local communities”, such as vape shops. It also plans to strengthen enforcement against businesses selling through online marketplaces that fail to meet their tax obligations.
A consultation is under way on proposals to make online marketplaces more responsible for preventing non-compliant sellers from avoiding their tax obligations, with further details to be announced. Revenue generated from these reforms will be reinvested in improvements to the business rates system.
The announcement builds on previous business rates reforms introduced during the current Parliament. At Budget 2025, the government announced a permanent 5p cut in the business rates multipliers for more than 750,000 retail, hospitality and leisure properties, funded by a higher multiplier for the most expensive 1% of properties. It also provided GBP 4.3 billion in support to limit bill increases following the revaluation, capping increases at 15% for most businesses from April 2026, or GBP 800 for the smallest businesses. In January, the government announced a 15% relief on 2026/27 business rates bills for pubs and live music venues, with bills frozen in real terms for a further two years.
The additional 20% reduction from 2027/28 will be applied on top of that support.
The government said the new discount will not apply to the very largest live music venues, with eligibility details to be set out at the Budget.
