UK government announces £100 million of business rates relief (not £300 million) for pubs- ix for cafes

15 per cent reduction in business rats fr pubs - whoop de do!

Per Brave AI:

“The UK Treasury has announced a £100 million annual support package for pubs today, marking a significant policy reversal after widespread backlash over soaring business rates. This temporary relief is designed to offset the steep rate increases expected from April 2026, following property revaluations and the end of pandemic-era discounts.

“Key details of the announcement include:

· Business rates bills for pubs will be frozen for two years, starting April 2026.

· The support is specific to pubs, excluding wider hospitality sectors like restaurants, cafes, and hotels, despite calls for broader reform.

· The package comes after Chancellor Rachel Reeves acknowledged that the initial Budget changes were too harsh, with forecasts showing average pub rate increases of 76% over three years.

· The relief is part of a larger £4.3 billion transitional support fund already earmarked for the hospitality sector.

While the move is welcomed by pub operators, concerns remain about the exclusion of other hospitality venues, with live music venues and hotels calling for similar assistance. Full implementation details are expected later today.

“Between July 2024 and December 2025, 366 pubs in England and Wales closed permanently, according to analysis by tax firm Ryan of government data.

“Pubs have faced significant increases in business rates since July 2024, driven by the 2026 revaluation based on trading levels in April 2024. The average pub rateable value has risen by approximately 30%, with combined rateable values across England and Wales increasing from £1.214bn (2023 list) to £1.578bn (2026 list)—a rise of £364.75 million.

“This increase is due to the valuation model using Fair Maintainable Trade, which links rates to turnover rather than profitability. Although turnover has recovered post-pandemic, rising costs—such as wages, energy, alcohol duty, and supply chain inflation—have not been factored in, leaving many pubs with higher tax bills despite tighter margins.”

“Business rates for pubs in England and Wales are calculated using a system called Fair Maintainable Trade (FMT), which estimates the annual level of trade (excluding VAT) a pub could reasonably achieve if operated efficiently. The Valuation Office Agency (VOA) determines the rateable value by applying a percentage to the FMT, using guidelines developed in collaboration with industry groups like the British Beer and Pub Association.

The final business rates bill is calculated by multiplying the rateable value by the government-set multiplier. For the 2026–2029 period:

· Pubs with a rateable value under £51,000 use a 38.2p multiplier.

· Pubs between £51,000 and £499,999 use a 43p multiplier.

· Pubs over £500,000 use a 50.8p multiplier.

Additionally, supporting small businesses (SSB) relief limits the increase in bills for pubs, using the 2025/26 bill as a starting point, regardless of previous transitional relief.

Clear as mud – local councils also apply their own rules, regulations and taxes. Pubs also suffered by the icreases in minimum wages and whacking great increases in employers national insurance. plus the criminal increases in utility rates such as electricity

More details on the way, hopefully, especially on music venues and high street shops.

Cheers, big ears! Let’s wach for the high stret strategy - bankrupt the high street, then bail it out???

Onwards!

PLEASE take a paid subscription or follow/recommend my site to others you think might be interested. You may also donate via Ko-fi – (any amount three dollars and above here): https://ko-fi.com/peterhalligan