Business rates relief for pubs and live music venues – what is changing?

Business rates have become an increasing concern for businesses in the hospitality and leisure sectors, with many facing significantly higher bills from April 2026.

To provide some support, the government has announced additional discounts for certain pubs, clubs and live music venues.

Why have business rates increased?

The higher costs follow a business rates revaluation alongside the removal of previous Covid-era relief.

For 2025/26, qualifying retail, hospitality and leisure businesses in England benefited from a 40% business rates discount.

However, the support available from 2026/27 is more targeted.

New discounts for pubs and venues

For 2026/27, qualifying public houses, clubs and live music venues are set to receive a 15% business rates discount.

A 20% discount has also been announced for 2027/28.

Unlike the previous retail, hospitality and leisure relief, the new discounts do not generally extend to restaurants, cafés and hotels.

Almost 32,000 pubs, clubs and live music venues are expected to benefit, with the typical pub expected to save around £1,100 in 2027/28.

What other relief may be available?

Small Business Rate Relief continues to provide valuable support.

For qualifying premises in England, 100% relief can apply where the rateable value is below £12,000, with tapered relief available for properties with a rateable value of up to £15,000.

Businesses losing the previous retail, hospitality and leisure discount may also benefit from the Supporting Small Business Relief scheme.

This can limit how quickly a business rates bill increases following a revaluation, although the calculations can be complicated and will depend on the circumstances of the individual property.

Separate business rates support is also available in Scotland and Wales.

What should businesses do?

Businesses in the hospitality and leisure sectors should review their latest business rates bills carefully and check whether all available reliefs have been applied.

This is particularly important where the rateable value of a property has changed or where a business previously benefited from retail, hospitality and leisure relief.

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Please note that the above is for general information only and does not constitute financial or tax advice. You should not rely on this information to make or refrain from making any decisions. You should always obtain independent professional advice in respect of your own situation.