Following concerns raised about the impact of business rates changes announced this year on pubs, Chancellor of the Exchequer Rachel Reeves has announced a package of support on business rates and licensing reform.

Pubs will now receive a 15% cut to new business rates bills from April 2026, followed by a two-year real-terms freeze, as well as a review into the method used to value them for business rates, in addition to the small business support announced at the budget.

In its press statement, the Government said that the package will “save the average pub an additional £1,650 in 2026/27. Around 75% of pubs will see their bills fall or stay flat over the same year with the pub sector as a whole paying 8% less in business rates in 2029 than they do currently.”

The Government also announced additional funding for the Hospitality Support Fund over three years, aiming to “help over 1,000 pubs provide extra services for local communities,” as well as licensing changes to enable pubs to hold more temporary events requiring late opening, such as screening sports matches.

Seb Slater, Executive Director of Shrewsbury BID, commented on the announcement, “Whilst this is welcome news for the pub sector, it is clear from the response of affected businesses that these measures don’t go far enough to support the long-term resilience of the sector. 

Outside of the pub sector, the reduction in business rate reliefs continues to place intense pressure on operating margins. We would like to see the government give further consideration to support for businesses in all sectors of retail, hospitality and leisure dealing with increased cost pressures across the board, from business rates bills going up to growing national insurance and wage costs.”

Kev Rippard, Pubwatch Chair and Co-Landlord of The Salopian Bar, commented on the news, “It does feel like the joined-up feedback from across the sector has finally made decision-makers recognise the level of financial pressure pubs are under right now. If this move softens the immediate impact of rising bills, then that will certainly help some businesses in the short term.

“However, for venues like ours that have already experienced a significant increase in rateable value, this doesn’t address the underlying problem. Operating costs remain high across the board, and the way pubs are valued for business rates continues to be a real concern for the trade. It’s a step in the right direction, but it’s not a long-term solution, more a case of kicking the can down the road.”