Business rates cut for pubs, clubs and live music venues from April 2027

Pubs, social clubs and live music venues in England are set to receive a further 20% cut to their business rates bills from April 2027.

The government estimates that nearly 32,000 properties will benefit. It says the typical pub could save about £1,100 during the 2027/28 financial year.

The full rules have not yet been published, so eligible businesses should avoid relying on the saving in their financial plans until the detailed figures are confirmed.

What has the government announced?

On 23rd July 2026, the government announced a new business rates discount for pubs, social clubs and live music venues in England.

According to the official government announcement, the package will be worth about £100 million a year. The 20% reduction is expected to take effect from 1st April 2027.

The discount will provide additional support on top of measures already announced for these businesses, which already benefit from a current relief. Eligible pubs and live music venues can receive a 15% reduction on their business rates bills during the 2026/27 financial year, and their bills are then due to be frozen in real terms for a further two years. The new 20% reduction comes on top of this.

Which businesses will qualify?

The government has said the new business rates reduction will cover:

• Pubs
• Social clubs
• Live music venues

The detailed eligibility rules have not yet been released.

The current relief for pubs and live music venues applies specific tests. For example, an eligible pub must be open to the general public, allow customers to buy drinks at a bar and permit drinking without requiring food to be purchased.

A live music venue must be used mainly for live music performances. Properties mainly used as nightclubs or theatres do not qualify for the current relief.

It is not yet clear whether the new discount will use exactly the same tests. Social clubs are included in the latest announcement, although they are not covered by the existing 15% scheme.

The government has also said that the largest live music venues will be excluded from the new discount. The threshold and further details are expected at the Budget.

What about cafés, restaurants and hotels?

The announcement does not include cafés, restaurants or hotels, despite these businesses facing many of the same pressures as pubs and music venues.

Some independent café owners have criticised their exclusion. They argue that cafés also serve as community meeting places and make an important contribution to local high streets.

Unless the scope changes before the scheme begins, businesses outside the three named categories will not receive the additional 20% reduction.

This does not mean that cafés, restaurants and hotels receive no business rates support. Since April 2026, qualifying retail, hospitality and leisure properties with rateable values below £500,000 have used lower business rates multipliers. Cafés, restaurants and hotels can fall within these rules where the relevant conditions are met.

How much could your business save?

The government estimates that the typical pub will save about £1,100 in 2027/28.

Your actual saving will depend on several factors, including:

• The rateable value of your property
• The business rates multiplier that applies
• Any transitional or small business support you receive
• Whether your premises meet the final eligibility rules
• Any further changes announced at the Budget

Business rates are based on a property’s rateable value rather than its profits or turnover. The local council applies the relevant multiplier and reliefs to calculate the final bill.

You can check your property’s rateable value and see how business rates are calculated on this page.

What should pubs and venues do now?

Businesses should continue to pay their current business rates bills as normal. The new reduction will not take effect until April 2027.

In the meantime, pub and live music venue operators should check whether the existing 15% relief has been included on their 2026/27 bill. Current relief is administered by local councils, so you should contact your council if you believe your business qualifies but the reduction is missing.

It is also sensible to check that the rateable value and property details used to calculate your bill are correct.

Accurate management accounts can help you assess the potential saving alongside changes to wages, energy bills, rent and other operating costs.

Could wider business rates changes follow?

The government has said that it will return to wider business rates reform at the Budget. This is expected to include a review of Small Business Rates Relief.

Businesses that are not covered by the new discount will need to wait and see whether any wider support is announced. We will provide an update when the full rules are available.

Need help with your business finances?

A reduction in business rates can help cash flow, but it is only one part of the financial picture.

THP can help you understand your business costs, prepare reliable forecasts and identify tax reliefs or other support for which you may be eligible.

Please contact a member of the THP team to arrange an initial, no-obligation conversation. We’re looking forward to hearing from you.