It has been confirmed that eligible pubs and live music venues in England will benefit from a 15% reduction on their business rates bills in 2026/27. Following this, business rates bills will be frozen in real terms for a further two years.

The British Beer and Pub Association (BBPA) has welcomed the announcement, stating that pub landlords will be relieved by the measure and that the relief will help to “stave off the immediate financial threat posed by accelerating business costs”. However, the sector continues to face broader concerns, particularly around rising overheads and increasingly tight profit margins.

Which pubs qualify?

To qualify for the relief, a pub must meet all of the following conditions:

  • Be open to the general public.

  • Permit free entry, except where occasional entertainment is provided.

  • Allow customers to drink without requiring food to be purchased.

  • Enable drinks to be bought at a bar.

The following types of businesses will be specifically excluded:

  • Restaurants, cafés, nightclubs and snack bars.

  • Hotels, guesthouses and boarding houses.

  • Sporting venues.

  • Festival sites, theatres and cinemas.

  • Museums and exhibition halls.

  • Casinos.

The government has advised local authorities that this list is not intended to be exhaustive, and councils will have discretion to determine eligibility where it is unclear.

The policy is intended to support venues that would ordinarily be considered pubs by the natural meaning of the term. One example would be a pub that is owned and operated by a brewery.

Which live music venues are eligible?

Properties that are wholly or mainly used for the performance of live music to entertain an audience will be eligible for the relief.

A venue may still qualify if it is also used for ancillary activities, such as selling food and drink to audience members, or if it is occasionally used for purposes that do not affect its primary function. Examples include use as a polling station or hosting a fortnightly community event.

However, 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 treated as a live music venue for the purposes of this relief.

What about Scotland, Wales and Northern Ireland?

Business rates policy is devolved in Scotland, Wales and Northern Ireland.

The Welsh Government has already indicated that it will consider whether further support for pubs is required once the final details of the announcement are fully understood.