Pubs sit at the heart of our communities, yet rising costs continue to place a strain on them and the hospitality sector.
The Autumn Budget’s changes to business rates were met with criticism and prompted the Government to reconsider its decision.
In a surprise U-turn, they have announced a 15 per cent reduction in business rates for pubs.
While this is welcome news, pub owners need to understand what the changes mean for them and how they can benefit from the available reliefs.
Business rates are a tax applied to most non-domestic properties, including pubs.
They are calculated based on the property’s rateable value, which is set by the Valuation Office Agency (VOA).
Your business rates bill is calculated by multiplying the rateable value by a business rates multiplier, which is set by the Government each year.
There are two main multipliers, this includes:
The Autumn Budget 2025 brought several changes to business rates and the Government announced that the annual business rates multiplier in England will reduce by between 11.7 per cent and 13.5 per cent.
However, rising rateable values and tapering reliefs will mean that many businesses are still facing increasing bills.
From April 2026, Retail, Hospitality and Leisure (RHL) relief will also reduce once again.
Properties with a rateable value of up to £51,000 will receive around 20 per cent relief, while those between £51,000 and £500,000 will receive 10 per cent relief.
This follows on from a sharp reduction in the relief from 75 per cent to 40 per cent in 2025/26 and may come as a shock to many pub owners.
Properties with a rateable value above £500,000 will also be subject to a super supplement of around 5.8 per cent, which will further increase their liabilities.
Following pressure from the sector, the Government has announced further support for pubs and live music venues.
From April 2026, eligible pubs will benefit from a 15 per cent reduction in their new business rate bills and this will be frozen for two years.
The Government has also committed to reviewing how pubs are valued ahead of the next revaluation in 2029.
With the changes to rates and reliefs fast approaching, pubs must prepare now to avoid unexpected costs and protect their cash flow.
Pub owners can:
While the new support offers short-term relief, it does not address the underlying problems in the business rates system.
Pubs should make the most of the reduction and seek financial support to ensure they are receiving all available reliefs and you remain resilient.
Our professional team can support you with budgeting and cash flow forecasts to help your business during uncertain times.
For further advice or support, contact our team today.
