Prime Minister Burnham's Business Rates Cut Is a Win for Pubs, Clubs and Live Music Venues

Prime Minister Andy Burnham has announced a new 20% cut to business rates bills for nearly 32,000 pubs, social clubs and live music venues across England from the 2027/28 financial year. The Government estimates that the typical pub will save £1,100 next year and says the package is worth around £100 million annually.¹

A targeted boost for pubs and community venues

The measure directs support towards businesses that bring people together, sustain local employment and help high streets and town centres remain active. For pub, club and venue operators, a lower rates bill should provide welcome headroom for investment, growth and job creation. It is a practical intervention in one of the fixed costs that matters most to bricks-and-mortar hospitality businesses.

The new cut comes on top of the 15% relief applied to pubs and live music venues for 2026/27, together with the real-terms freeze in their bills for a further two years. The Government says the new package will be fully funded, including through a review of reliefs for businesses it considers not to make a positive contribution to local communities and through action on online marketplace sellers that do not comply with their tax obligations.¹

A clear success for the Prime Minister

This announcement is a clear policy success for Prime Minister Burnham. It converts his commitment to protect pubs and local high streets into a specific, measurable reduction in bills for thousands of venues. By focusing help on businesses with a strong community presence, the Prime Minister has also set a positive direction for the wider business rates reforms due to be revisited at the Budget.

The decision recognises that pubs, social clubs and live music venues are not simply commercial premises. They support jobs, contribute to the identity of places and provide shared spaces for local communities. Backing them through the rates system is a welcome signal that the Government understands their wider economic and social value.

Alcohol.co.uk response

Alcohol.co.uk warmly welcomes this announcement. A 20% reduction in business rates bills is a substantial and positive step for pubs, clubs and live music venues, and it should give thousands of operators greater confidence to invest, grow and support local jobs.

Business rates reform and the long-term strength of licensed venues are among the policy issues in which Alcohol.co.uk has a particular interest. We view this measure as a win for the industry and for Prime Minister Andy Burnham, whose decision offers direct support to businesses at the heart of communities across England.

What happens next

The 20% cut is due to apply from 2027/28 and covers eligible pubs, clubs and live music venues in England. The very largest live music venues will not qualify for the new discount, with the Government due to set out the detailed eligibility rules at the Budget. The estimated £1,100 saving is for a typical pub, so the actual effect on individual businesses will vary.¹

Alcohol.co.uk will follow the Budget detail closely, including the eligibility rules and the Government’s promised return to wider reform of the business rates system and Small Business Rates Relief.

Source

Contains public sector information licensed under the Open Government Licence v3.0.