Struggling pubs are set to receive a 15% reduction in their new business rate bills as part of a significant government support initiative announced today. The Treasury minister, Dan Tomlinson, revealed that this measure will take effect from April, with pubs also benefitting from a freeze in real terms for the following two years. Additionally, the valuation model utilized for pubs will undergo a review.
Mr. Tomlinson unveiled this crucial support, stating that it equates to £1,650 for the average pub next year, resulting in approximately three-quarters of pubs witnessing a decrease or maintenance in their bills. Subsequently, these bills will be locked at current levels for the subsequent two years.
The minister highlighted that with this support, the overall business rates paid by the sector will decrease by 8% in 2029 compared to current rates. Moreover, the package will encompass live music venues, a demand echoed by Labour MPs.
In a move to reform licensing, pubs and other licensed establishments will be permitted to extend their opening hours during the later stages of this summer’s World Cup matches.
Chancellor Rachel Reeves emphasized the government’s commitment to revitalizing communities by supporting British pubs and implementing a new High Streets Strategy to address the enduring challenges faced by retail, leisure, and hospitality businesses. The Mirror has championed the cause through its Your Pub Needs You campaign, advocating for support for landlords and the communities they serve.
The Treasury’s intervention follows mounting criticism from industry leaders and MPs regarding upcoming tax hikes and the elimination of Covid-era discounts, which were announced in the Budget last November. However, the government recently announced adjustments to these plans, with Ms. Reeves acknowledging the concerns raised by publicans and pledging action.
Recent data revealed the closure of 188 pubs in the final quarter of 2025, predominantly community pubs reliant on beverage sales for survival. The British Beer and Pub Association’s Chief Executive, Emma McClarkin, expressed satisfaction with the government’s responsiveness to industry concerns and the specific support package for pubs, which will alleviate immediate financial pressures.
Kate Nicholls, chair of UKHospitality, welcomed the emergency funding for pubs but stressed the ongoing challenges faced by restaurants and hotels due to successive Budgets. She urged the government to introduce substantial solutions to reduce costs and ensure the sustainability of businesses in the hospitality sector.
While acknowledging the positive impact on pubs and music venues, Kate Shoesmith, Director of Policy at the British Chambers of Commerce, noted that more comprehensive measures are required to support businesses experiencing significant pressures, particularly concerning business rates. Research indicates escalating apprehension among firms, with a notable increase in concerns within the hospitality sector.