Pubs and music venues to get business rates cut after Reeves’ budget backlash

Government climbdown, first revealed by The Independent, comes after warnings that changes in the autumn budget would lead to mass closures, as one pub a day has shut its doors since Sir Keir Starmer took office

Pubs and music venues will get 15 per cent off their business rates bills from April as part of a major support package, the Treasury has announced.

It comes after warnings from the sector that changes from November’s autumn budget would lead to mass closures and job losses.

However, other hospitality businesses such as hotels, restaurants and cafes will not receive additional support despite their own concerns over soaring tax bills.

The U-turn, first revealed by The Independent earlier this month, extends rate relief in an effort to help landlords with rising bills, instead of scrapping cash support from April.

Treasury minister Dan Tomlinson said the property tax bills for pubs and music venues in England will be reduced by 15 per cent in 2026/27 and then be “frozen in real terms” for the next two years.

He added that the support will be worth £1,650 for the average pub next year.

Mr Tomlinson said: “This decision will mean that the amount of business rates paid by the pub sector as a whole will be lower in 2028/29.

“It will also apply to music venues too. Many are valued as pubs and it would not be right to draw the line.”

The Treasury’s intervention comes after an intensifying backlash from industry bosses and MPs over impending tax increases.

This has also seen dozens of Labour MPs, including Chancellor Rachel Reeves, barred by pub landlords in response to the budget.

In the budget, the Treasury announced changes to business rates which introduced a lower multiplier used to calculate the commercial property tax.

However, this was more than offset by the removal of a Covid-era 40 per cent discount to business rates bills for hospitality, leisure and retail businesses, as well as new property valuations.

Chancellor Rachel Reeves’ budget saw her barred by pub landlords (PA)

The Chancellor introduced transitional relief to manage increases to rates bills over the next three years after the removal of sector discounts.

However, industry bodies UKHospitality and the British Beer and Pub Association (BBPA) had warned that pub business rates bills would still increase by an average of 15 per cent, or £1,400, in April without an intervention.

They said this would have led to an average rise of 76 per cent, or £7,000, by the 2028/29 financial year.

Business rates are devolved in Scotland, Wales and Northern Ireland.

Emma McClarkin, chief executive of the BBPA, said: “We are pleased the Government has listened to our concerns, and those of publicans, consumers and MPs who rallied to defend our locals.

“This pub-specific package will stave off the immediate financial threat posed by accelerating business costs and will help keep the doors open for many.”