Treasury minister says that under the new measures, every British pub will receive 15% off its new business rates bill as from April ’26. This is in a package worth an average of USD 2,277 (£ 1,650) each. Treasury confirms that Pubs and live music venues to receive support after business rates backlash.
The Treasury has unveiled a support package worth more than USD 110.4m annually for pubs and live music venues in both England and Wales. It is a climbdown that follows a fierce backlash against plans to overhaul business rates.
Trade circles had warned that Rachel Reeves’s changes to business rates, announced at the chancellor’s November ’25 budget, would be detrimental to business. It was anticipated to trigger widespread closures and job losses in the hospitality sector, particularly in pubs.
On Tuesday, 27 January ’26, the government announced financial support to mitigate the effect of the rates shake-up. This announcement came after the official admitted that they had not anticipated the full financial implications.
The package, the final details of which were still being finalised on the night of Monday, 26 January, is expected to be worth more than USD 110.4m (£ 80m) annually, sustained for 3 years, for both pubs and gig venues. It is expected to be worth more than USD 110.4m (£ 80m) annually, sustained for 3 years, for both pubs and gig venues.
The Exchequer Secretary to the Treasury, Dan Tomlinson, said that every pub in England and Wales would receive around 15% off its new business rates bill from 1 April ’26. This is worth an average of USD 2,277 (£ 1,650) each. Bills are likely to then be frozen in real terms. This would account for inflation over an additional two years.
Tomlinson said that this support is worth USD 2,277 (£ 1,650) for the average pub just next year. It would mean that around 3/4 of pubs will see their bills either fall or stay the same next year in 2027.
