It has been announced that eligible pubs and live music venues in England will receive a 15% discount on their business rates bills in 2026/27. Rates bills will then be frozen in real terms for a further two years.
The British Beer and Pub Association (BBPA) has said that pub landlords will breathe a sigh of relief and that the relief will “stave off the immediate financial threat posed by accelerating business costs.”
Wider concerns remain over the challenge of rising costs and squeezed profit margins.
Which pubs are eligible?
To be eligible, a pub must meet all of the following criteria. - Be open to the general public. - Allow free entry other than when occasional entertainment is provided. - Allow drinking without requiring food to be consumed. - Permit drinks to be purchased at a bar.
Businesses that will be specifically excluded are:
- Restaurants, cafes, nightclubs, snack bars.
- Hotels, guesthouses, boarding houses.
- Sporting venues.
- Festival sites, theatres, cinemas.
- Museums, exhibition halls.
- Casinos.
The government has advised local authorities that the above list is not intended to be exhaustive, and the local authority will have discretion to make the determination where eligibility is unclear.
The intent of the policy is to benefit pubs that would be classified as such by the natural meaning of the word. Being owned and operated by a brewery would be one example of this.
Which live music venues are eligible?
Properties that are wholly or mainly used for the performance of live music to entertain an audience will qualify for the relief.
The property is still likely to qualify if it is used for other ancillary activities, such as the sale of food and drink to audience members or is infrequently used in a way that does not affect its primary use, such as use as a polling station or fortnightly community event.
A property that is wholly or mainly used as a nightclub or theatre under the Town and Country Planning (Use Classes) Order 1987 (as amended) will not be considered to be a live music venue for the purposes of the relief.
What is the position in Scotland, Wales and Northern Ireland?
Business rates are devolved in Scotland, Wales and Northern Ireland.
The Welsh government has already indicated that it will explore whether additional support for pubs is needed once the final details of the announcement are known.
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