Pubs given support package after business rates backlash

Pubs and grassroots music venues in England will receive a 15% discount on their business rates from April, with the government also freezing any further increases for two years. Treasury Minister Dan Tomlinson said the three‑year package would be worth around £1,650 for the average pub in 2026/27.

The announcement follows a strong backlash to November’s Budget, which left many hospitality businesses facing steep rises in their rates bills and prompted more than a thousand pubs to ban Labour MPs in protest. UK Hospitality has warned that hotels, restaurants and other venues remain at risk and urged ministers to widen the support.

According to the government, the package will cost £80m in its first year, with the Office for Budget Responsibility set to assess the cost of the following two years. Ministers also committed to reviewing how pubs are valued by the Valuation Office Agency ahead of the next revaluation in 2029.

Shadow Chancellor Mel Stride criticised the measures as “a sticking plaster”, arguing they merely delay financial pressure rather than resolve it. Liberal Democrat Treasury spokesperson Daisy Cooper said the support still leaves pubs facing higher bills and does nothing for other high street businesses. She called for increased discounts across the retail, hospitality and leisure sectors, as well as a temporary VAT cut.

Industry reaction has been mixed. Chris Tulloch, managing director of Blind Tiger Inns, which operates 23 pubs across the North West, said the measures were “not a rescue package nor a lifeline”. Despite increased footfall and revenue, he said profit margins have fallen by around 25% in two years due to rising labour costs, National Insurance contributions and business rates. Even with the new discount, he expects costs to continue rising and argues that full reform of the business rates system is needed.

UK Hospitality said the measures address an acute challenge for pubs but warned that restaurants and hotels still face severe pressures. The British Beer and Pub Association said the package would help stave off immediate financial threats, though long‑term reform remains essential.

Many businesses are still seeing their bills rise due to higher property valuations, despite the government lowering the multipliers used to calculate rates. Pandemic‑era discounts for small hospitality and retail businesses have also been phased down and will end entirely in April. UK Hospitality has warned that without intervention, the average pub’s business rates bill would rise by 76% over the next three years.

The government has already announced a £4.3bn fund to support businesses as relief tapers off. With the additional measures announced on Tuesday, ministers say three in four pubs will see their business rates fall or remain unchanged next year.