Welcome relief for pubs – but the high street still needs a fairer rates system

HM Treasury has announced a new support package aimed at pubs and grassroots live music venues, ahead of upcoming changes to business rates.

The headline measures are a 15% cut to new business rates bills from April 2026, followed by a two-year freeze in real terms.

Ministers say this will save the average pub around £1,650 in 2026/2027, and that roughly three-quarters of pubs will see bills fall or stay flat.

The package also includes a commitment to review the method used to value pubs for business rates, with any changes intended to be implemented for the 2029 revaluation.

Alongside business rates, the government is also signalling a push to make it easier for pubs to trade through peak moments.

It's confirming later opening for certain Home Nations World Cup games and pointing to further reforms on temporary events and other "red tape" measures.

What's changed

• A short-term reduction in bills for pubs and grassroots music venues: This is direct help with cash flow. A 15% discount is simple, and it matters for operators who are facing rising costs and tight margins.

• A promise to look again at how pubs are valued for rates: Pubs are often valued using approaches that track turnover and trading performance.

  The government is now acknowledging that this can feel out of step with cost pressures, and says it'll review the valuation method, but not until the 2029 revaluation.

• Trading-hour flexibility around major events: Later opening for some World Cup fixtures can add revenue without forcing venues through extra admin for each night.

Why this is happening now

This move comes after a concerted backlash against the Autumn Budget, which left many small businesses facing considerable increases in their business rates bills.

Why bills can still rise even when government tweaks the system

While the government has lowered the multipliers, many pubs, restaurants and hotels are still seeing their bills increase due to unfavourable property revaluations.

This is why "short-term relief" and "long-term reform" both matter. Relief helps cash flow this year. Actual reform lets founders plan, invest and hire with confidence.

Why Enterprise Nation welcomes it – but won't stop there

Pubs and grassroots venues are important small businesses. They anchor footfall, employ locally and bring people into town centres. This support should genuinely help many operators.

But it also underlines a broader point. A pub-only fix doesn't solve the underlying problem for the wider high-street economy.

Most local places are a mix of pubs, cafés, hairdressers, gyms, retailers and studios. Many face the same pressures with rent, energy, staffing and business rates bills that are hard to predict.

UKHospitality has warned that hotels, restaurants and other businesses in the sector are also at risk, and are calling for the support package to be widened.

That's why we're welcoming the relief while pushing for a system that works for every local small business, not just one category.

The pub owner's view

Adam Smith, landlord at the Hare and Hounds in Hawsker, says his business rates have doubled since he took over the pub near Whitby three years ago.

Responding to the news of a 15% cut to business rates from April, he added:

"It's a little bit but it's really not much. It's still a kick in the teeth because the biggest problem pubs have is rising VAT on alcohol sales. That's what's actually crippling independent small pubs and that's what should be tackled urgently."

Bryan Houde is the director of wine bar, wine shop and kitchen Wine Monkey on Chippenham high street.

His business rates have gone up by 25% since he launched the business three years ago, but welcomed the news of the 15% cut.

"Anything like this kind of reduction in what's essentially heavy admin and heavy cost is great news for the industry.

"If you look at the larger picture, businesses are collecting things like VAT and sales tax that goes back to our public services. They're also paying business rates on top of that, plus National Insurance on employees.

"The employer is the one who sits in the middle and collects and redistributes everything. So if you're overtaxing, you're not just going to lose a business when they shut down, you're going to lose all this other access to public funding that's coming through.

"Reducing taxation is a smart thing to do, because by alleviating the pressures on the business, you're allowing public funding to flow."

What to watch next

• The detail and delivery: Reliefs live or die on implementation. The government will need clear guidance so the scheme is consistent, and businesses aren't left with a postcode lottery. (The press reporting so far is already focusing on who's in and who's out.)

• Whether reform comes sooner than 2029: A review that only coincides with the 2029 revaluation is slow. Many small firms are making decisions now, on leases, staffing and investment.

• The promised High Streets Strategy: Ministers say a wider strategy will follow later this year. That's the moment to widen the lens beyond pubs, and set out a simpler, more predictable approach to business rates for the full range of small high-street businesses.

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