UK government announces 20% business rates cut for venues
The UK government has announced a 20% reduction in business rates bills for eligible pubs, social clubs and live music venues in England from April 2027.
The measure is expected to benefit nearly 32,000 businesses, with the government estimating that a typical pub will save approximately £1,100 during the 2027/28 financial year. The discount will be introduced on top of existing support for the sector.
Eligible pubs and live music venues are already receiving a 15% reduction for the 2026/27 financial year. Their bills had previously been scheduled to be frozen in real terms for the following two years.
The government said the additional relief would be funded partly through a review of support available to businesses it considers less beneficial to local communities, including vape shops. It is also consulting on measures intended to prevent sellers operating through online marketplaces from avoiding UK tax obligations.
The new 20% discount will not apply to the largest live music venues, with detailed eligibility criteria due to be announced as part of the government’s Budget.
Newly appointed UK Prime Minister Andy Burnham said the initiative was intended to support businesses that contribute to local high streets and communities.
“For too long, governments have stood by while cherished venues have disappeared from our local high streets,” Burnham said. “This government will back the businesses that people want to see in their communities.”
Chancellor John Healey said pubs, clubs and live music venues supported local employment and helped maintain activity in town centres and high streets.
Music Venue Trust welcomed the announcement, describing the reduction as an “encouraging first step” towards protecting and strengthening the grassroots live music sector.
The organisation said it would work with the government to ensure that all eligible grassroots venues in England are recognised under the scheme. It also called on the devolved governments in Wales, Scotland and Northern Ireland to introduce equivalent support using funding resulting from the Barnett formula.
However, MVT chief executive Mark Davyd urged the government to reconsider restrictions based on venue size.
“Live music is an ecosystem, and we strongly urge the government to reconsider the limit to the eligibility criteria so that all live music spaces of all sizes qualify, supporting jobs, local economies and communities to access live music,” Davyd said.