Nearly 32,000 pubs, social clubs and eligible live music venues across England are set to benefit from an additional 20% cut to their business rates bills from April 2027.

Announced by Prime Minister Andy Burnham on 23 July, the measure is expected to save a typical pub approximately £1,100 during the 2027/28 financial year. The package will cost the Government around £100 million annually.

The new discount will come on top of existing support for pubs and live music venues, including the 15% relief announced in January for 2026/27 and the decision to freeze bills in real terms for a further two years.

The relief does not currently extend to other hospitality businesses, including restaurants, cafés and hotels. Full eligibility criteria will be announced at the autumn Budget, with the Government confirming that the largest live music venues will not qualify for the additional discount.

Prime Minister Andy Burnham said: “For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.

“This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.”

The British Institute of Innkeeping welcomed the announcement as an important first step while calling for further action on the overall tax burden facing pubs.

BII CEO Steve Alton said: “Our members, operating independent pubs at the heart of their communities in towns and high streets across the UK, will be encouraged by this initial step taken by the new Prime Minister in his first few days in office. The recognition he has given to the vital role that pubs play in local economies, local employment and the huge social value they bring to their communities is welcome.

“However, even with this additional 20% discount on current bill levels, we now need to see a significant change to the cumulative taxation faced by our sector, to allow our nations’ pubs to have the ability to grow and reach their full potential.

“In order for pubs to be able to support local employment growth, particularly for young people beginning their careers, we need to see significant change to the overall tax burden they face. Our members have been clear and consistent in their calls for an urgent need to reduce their cumulative tax bill with a priority of a fair deal of VAT at 10% on all pub sales.”

Emma McClarkin, CEO of the British Beer and Pub Association, said: “For years and years, pubs have paid a disproportionately higher rate which has ground down their ability to keep the doors open, so we're delighted that after working with Andy Burnham’s team prior to his election as Labour Party leader, he has swiftly acted on our concerns and provided new backing to our nation’s pubs as he promised. 

"The local has and always will be more than just a place to get a pint; it creates jobs, it's our nation's living room, it's the anchor of the high street, so this sorely needed discount will be celebrated by pubs up and down the country.

"We now look forward to working with Government to deliver permanent business rates reform so we can keep the pub in its rightful place; at the heart of our communities."

CAMRA Chair Ash Corbett-Collins described the move as a “brilliant start” to the Prime Minister’s tenure and said the relief would give pubs and social clubs “vital breathing space”. However, CAMRA maintained that the wider business rates system remains unfair to the pub sector and called for more detail at the Budget.

The Night Time Industries Association also welcomed the inclusion of clubs alongside pubs and live music venues.

NTIA CEO Michael Kill said: “The announcement of a 20% business-rates reduction across England from April next year is a significant and welcome intervention. With a typical pub expected to save around £1,100 annually, and the Government committing approximately £100 million a year to the policy, this has the potential to provide meaningful relief to businesses facing sustained cost pressures.

“We are still awaiting the full details and eligibility criteria, which are expected to be announced at the autumn Budget. We will also seek clarity on the proposed exclusion of the largest live-music venues and continue to press for the final scheme to provide the broadest possible support.”

Jonathan Neame, Chief Executive at Shepherd Neame Ltd, commented "We warmly welcome the Prime Minister's decision to cut business rates for pubs, clubs and live music venues.

"The fact that this has been announced within the first few days of his premiership sends a clear signal that he understands the vital role our sector plays in the economy and in communities across the country.

"Our industry can be quick to criticise when policies make life harder for pubs, so it is equally important to acknowledge and applaud positive, practical measures when they are taken. This is a sensible step that will provide a welcome boost to businesses facing significant cost pressures.

"Pubs are far more than places to enjoy a drink. They create jobs, support local suppliers, bring people together and are often at the heart of their communities. Measures that help them remain viable are investments in our high streets and local economies.

"While there is still more to do, particularly to deliver long-term reform of the business rates system, today's announcement is an encouraging start. We look forward to working constructively with the Government to ensure Britain's pubs continue to thrive for generations to come."

The Government has said it will return to its commitment to reform the wider business rates system at the Budget, including reviewing Small Business Rates Relief. The new package will be funded partly through a review of reliefs available to businesses that the Government considers do not make a positive contribution to local communities, with vape shops cited as an example.