Struggling pubs are set to receive a 15% reduction in their new business rate bills as part of a significant government support package announced today. The Treasury minister, Dan Tomlinson, revealed that this measure will take effect from April, with pub bills also facing a freeze in real terms for the following two years. Additionally, a review of the valuation model used for pubs will be conducted.
The implementation of this support is expected to provide an average of £1,650 in savings for each pub next year. Around three-quarters of pubs are anticipated to witness a decrease or no change in their bills for the upcoming year, followed by a real-terms freeze for the subsequent two years. Mr. Tomlinson emphasized that this initiative will result in an overall 8% reduction in business rates for the sector by 2029.
In a bid to further bolster the industry, the government announced that live music venues will also benefit from this support, a move that was advocated for by Labour MPs. In conjunction with licensing reforms, pubs and other licensed establishments will have the opportunity to extend their opening hours after midnight during the later stages of this summer’s World Cup matches.
Chancellor Rachel Reeves expressed the government’s commitment to revitalizing local communities by supporting pubs and enhancing high streets. She highlighted the new High Streets Strategy aimed at addressing the enduring challenges faced by retail, leisure, and hospitality businesses. The Mirror, through its Your Pub Needs You campaign, has been actively championing the cause of the industry, advocating for assistance for landlords and the communities they serve.
The government’s intervention comes in response to mounting opposition from industry leaders and MPs regarding impending tax hikes and the elimination of Covid-era discounts. Following concerns raised, the government adjusted its plans earlier this month, with Ms. Reeves affirming the readiness to address the concerns of publicans.
Recent statistics revealed a loss of 188 pubs in the final quarter of 2025, with the majority being community pubs that heavily rely on beverage sales. The report also indicated declines in food-led pubs and high street establishments, underscoring the challenges faced by the sector.
Industry representatives, including Emma McClarkin of the British Beer and Pub Association, welcomed the government’s responsive measures, emphasizing the critical financial relief provided to pubs. They highlighted the importance of ongoing collaboration with the government to establish a sustainable long-term plan, particularly through permanent business rates reform to support pubs in remaining integral to communities.
Kate Nicholls, chair of UKHospitality, acknowledged the emergency funding announcement as a step in the right direction for pubs but stressed the need for comprehensive solutions to address challenges faced by restaurants and hotels. The hospitality sector continues to seek substantive interventions to alleviate financial pressures and ensure business sustainability.
Kate Shoesmith, director of policy at the British Chambers of Commerce, commended the support extended to pubs and music venues while highlighting the pressing need for broader assistance to alleviate the significant pressures faced by various businesses. Concerns over business rates were emphasized, with a substantial portion of firms expressing apprehension, particularly within the hospitality sector.