The government has today announced that pubs, clubs and live music venues will receive a further 20% cut to their business rates bills from April 2027.

Building on the work done at the last Budget and earlier this year, the changes will breathe life into communities across the country. The new package of support is expected to be worth around £100 million per year, and will benefit around 32,000 pubs, clubs and live music venues. This is in addition to the 15% discount introduced in April this year and 2-year real-terms freeze in their bills.

This means a typical pub will save an estimated £1,100 in the next financial year. Compared with 2025/26, pubs are expected to pay around 27% less in business rates by 2028/29.

The relief will broadly apply to the same properties that are benefitting from the 15% relief announced earlier this year. To target support where it is most needed, the government will not be making the 20% discount available to the very largest live music venues. However, all live music venues will continue to benefit from support announced in January. Further details will be provided at the Budget on how this carve out from the 20% relief will apply.

These changes will be fully funded, including through reviewing business rates reliefs for businesses that do not make a positive contribution to local communities, such as vape shops. In addition, subject to consultation, revenue raised from extending the VAT online marketplace liability rules will be used to fund these changes. More detail on this will be set out at the Budget.

This is just the first step of the Prime Minister and Chancellor’s plans to back Britain’s communities and high streets, and the government will return to the commitment to reform the business rates system at the Budget.

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