The government has announced a new business rates support package for pubs and music venues in England. Below is a summary of the announcement, however we advise checking the GOV.UK website for the most up-to-date information and advice.

Pubs support package explained:

Pubs will get a 15% cut to new business rates bills from April followed by a two-year real-terms freeze, as well as a review into the method used to value them for business rates. This is on top of support announced at Budget.

The three-year package was confirmed by Treasury Minister Dan Tomlinson, who said it would be worth approximately £1,650 for the average pub by 2026–27. The government estimates the scheme will cost £80 million in its first year, with the following two years to be formally assessed by the Office for Budget Responsibility.

The government is also launching a review into how pubs are valued. The review will be carried out by the government alongside businesses and their representatives as well as valuation experts, ensuring that any decisions that follow will be implemented for the 2029 revaluation.

As many grassroots live music venues serve as pubs and vice versa, they will also be included in the support package. This means their new business rates bills will be cut by 15% from April and frozen in real-terms for the following two years.

Background information:

Pubs have faced significant pressure as their numbers have fallen by nearly 7,000 since 2010, a roughly 15% reduction and amongst the highest across hospitality overall. The sector has also raised concerns around the way they are valued for business rates purposes.

Around 75% of pubs will see their bills fall or stay flat over the same year with the pub sector as a whole paying 8% less in business rates in 2029 than they do currently.

The measures follow significant concern across the hospitality sector after November’s Budget, which left many businesses facing steep rises in business rates.

Industry response:

While the announcement will be welcomed by many pub operators, industry bodies have warned that the measures do not go far enough. UKHospitality has said that hotels, restaurants and other hospitality businesses remain at risk, calling for the support package to be widened beyond pubs and music venues.

Click here to read Kate Nicholls, Chair of UKHospitality’s, response to the announcement.

What this means for Zero Procure Customers…

Pub and music venue operators will see short-term relief and greater certainty over business rates until at least 2027. Non-pub hospitality, leisure and other venue members currently receive no additional support under this package, despite ongoing pressure from rising costs. Further lobbying is expected from industry bodies for wider relief across the sector.

The Zero Procure team will continue to monitor developments and keep you informed of any changes or extensions to business rates policies.

Kate Nicholls, Chair of UKHospitality, said:

“We welcome the recognition by the Prime Minister and the Chancellor of the scale of the challenges facing the hospitality sector. They have listened to us about the acute cost challenges facing businesses, all of which is impacting business viability, jobs and consumer prices.

“The rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution. The Government’s immediate review of hospitality valuations going forward is clear recognition of this.

“The devil will be in the detail, but we need to see pace and urgency to deliver the reform desperately needed to reduce hospitality’s tax burden, drive demand, and protect jobs and growth. We will work with the Government over the next six months to hold their feet to the fire to deliver this.

“This emergency announcement to provide additional funding is helpful to address an acute challenge facing pubs.

“The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets. They need to see substantive solutions that genuinely reduce their costs.

“Without that clear action, they will face increasingly tough decisions on business viability, jobs and prices for consumers. Those are costs borne by us all, and I hope the Government delivers on its promise to support the whole hospitality sector.”

For further information, please visit GOV.UK website.