UK Prime Minister announces 20 percent business rates cut for English pubs

United Kingdom | Pubs, social clubs and live music venues in England will be given a 20 percent cut to business rates from April 2027. The new Prime Minister Andy Burnham called it a “first step” to help the industry, the BBC reported on 23 July. The government estimates the plan will save firms around GBP 1,100 (USD 1,470) each next year.

With a cost of GBP 100 million, it will be funded by a review of tax relief on firms such as vape shops, which “do not make a positive contribution to local communities”, the government said. Some hospitality firms welcomed the move but others in the industry, such as hotels and restaurants, questioned why the 20 percent cut would not be extended to them as well.

Pubs have now had two rounds of relief - a 15 percent cut in April and a further 20 percent which will come into force next year. Details about which businesses are eligible will be announced at Chancellor John Healey's first Budget in the autumn. The cut is expected to benefit almost 32,000 venues.

However, for struggling hospitality venues, which have seen costs soar in recent years, the rates cut could amount to little more than a drop in the bucket.