Business Rates Cut of 20% for Pubs, Clubs and Music Venues from April 2027
The government will cut business rates bills by 20% for nearly 32,000 pubs, social clubs and live music venues in England from April 2027, saving a typical pub an estimated £1,100.
By Entrepreneur Group · Published · Updated
Pubs, social clubs and live music venues in England will have their business rates bills cut by 20% from April 2027. The government announced the cut on 23 July 2026, in the new Prime Minister's first week in office. It says nearly 32,000 venues will benefit and the typical pub will save an estimated £1,100 in 2027/28.
The package is worth around £100 million a year. The government says it is fully funded, partly by reviewing reliefs for businesses it says do not benefit local communities, with vape shops given as an example, and partly by a crackdown on online marketplace sellers that do not meet their tax obligations.
What has been announced
According to the GOV.UK announcement, the main points are:
- A 20% cut to business rates bills for pubs, social clubs and live music venues in England.
- It applies from April 2027, the 2027/28 financial year.
- The very largest live music venues will not receive the new discount. The government says the details will be set out at the Budget.
- It comes on top of the 15% relief announced in January 2026 for pubs and live music venues' 2026/27 bills, which were also frozen in real terms for a further two years.
The government also said wider business rates reform, including Small Business Rates Relief, will be set out at the Budget. The Autumn Budget is due on 28 October 2026.
How it fits the wider business offer
The day after the rates announcement, the Prime Minister held first calls with business groups including the Federation of Small Businesses, the British Chambers of Commerce, Small Business Britain, the Startup Coalition, Enterprise Nation and the ScaleUp Institute. The Downing Street summary lists the rates cut as part of a "new offer" that also promises lower costs, faster decisions, fewer barriers to hiring and public procurement that backs British businesses by default.
The same announcement recalls earlier changes that are already in place. At Budget 2025 the government made a permanent 5p cut to business rates multipliers for over 750,000 retail, hospitality and leisure properties, funded by a higher multiplier for the most expensive 1% of properties. It also provided £4.3 billion to cap bill increases at 15% for most businesses, or £800 for the smallest, from April 2026 as pandemic-era reliefs ended.
What venue owners can do now
This section is editorial guidance, not tax advice.
- Check your current bill. Look at your 2026/27 rates bill to see which reliefs already apply, including the 15% relief for pubs and live music venues.
- Confirm how your property is classed. The cut is for pubs, social clubs and live music venues. If your premises mix uses, such as a restaurant with occasional live music, ask your local council how the property is described on the rating list.
- Plan with care. The £1,100 figure is the government's estimate for a typical pub. Your saving depends on your rateable value and other reliefs, and the threshold for the largest venues has not yet been published.
- Watch the Budget. Detail on the exclusion for the largest venues, and any change to Small Business Rates Relief, is due on 28 October.
Frequently asked questions
When does the 20% business rates cut for pubs start?
It applies to business rates bills from April 2027, the 2027/28 financial year, for pubs, social clubs and live music venues in England.
How much will a typical pub save?
The government estimates the typical pub will save £1,100 in 2027/28. Nearly 32,000 pubs, clubs and live music venues are expected to benefit.
Do the largest music venues get the 20% cut?
No. The government says the very largest live music venues will not receive the new discount, and the details will be set out at the Budget.
Sources
- GOV.UK: Burnham means business: PM slashes business rates bills for pubs, clubs and live music venues (23 July 2026) (reviewed 27 October 2026)
- GOV.UK: PM puts new offer on the table to businesses in first talks with industry groups (24 July 2026) (reviewed 27 October 2026)
- Invest Sefton: 20% business rates cut for pubs, clubs and live music venues from April 2027 (reviewed 27 October 2026)