The Government has announced a scheme aimed at relieving some of the pressures felt by pubs and live music venues following recent rises in business rates.

As we previously discussed here, it was widely anticipated that the Government would take action in this area after the expiry of pandemic-era reliefs, combined with the latest revaluation of property values, has meant that many venues have seen their business rates increase significantly, despite the five percent reduction in headline business rates for the hospitality industry announced at the last Budget.

The new relief is only directed at eligible pubs and live music venues, which will benefit from a 15% cut to their business rates in 2026-27, followed by a freeze in real terms for a further two years.

Already, there have been calls for the Chancellor to extend the relief to other parts of the hospitality sector. Responding to the announcement, the Chair of UKHospitality, Kate Nicholls, said that “the rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution”. This echoes the sentiments of the Chair of the Culture, Media and Sport committee, Dame Caroline Dinenage who, as we discussed previously, highlighted the impact of the business rates rises on other venues such as cinemas.

While no wider package is currently on the horizon, the Government has announced that it is launching a review into how hospitality venues are valued, as well as a High Streets Strategy which will be published later this year.

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