Business rates will change significantly for pubs and live music venues from April 2026. These changes follow a national revaluation and the removal of pandemic-era reliefs. As a result, many businesses will face higher costs despite new support measures.
What are Business Rates?
Business rates are a tax on non-domestic properties. The Valuation Office Agency reviews them every three years to reflect market conditions.
A business rates bill depends on two things:
| Element | Explanation |
|---|---|
| Rateable Value | Reflects the property’s estimated rental value or trading potential |
| Multiplier | The tax rate set by the govnerment |
You calculate the bill by multiplying the rateable value by the multiplier. Although this seems simple, changes to either element can significantly affect the final bill.
Business Rates for Pubs and Venues in 2026
The government published new rateable values in November 2026. These values take effect on 1 April 2026 and will apply until 2029.
At the same time, several changes will take place:
- The 40% hospitality discount will end
- New lower multipliers will apply
- Five different multipliers will replace the current system
However, the lower multipliers will not fully offset rising property values. Therefore, many businesses will still see higher bills overall.
Additionally, the removal of pandemic support marks a return to standard taxation. Consequently, businesses that relied on temporary reliefs will feel increased pressure.
Why are Pubs Hit Harder?
Pubs face larger increased than most sectors. Rateable values for pubs will rise by an average of:
- 30% for standard pubs
- 70% for pubs with accommodation
In comparison, average increases across all properties sit at 19.4%.
The valuation method explains this difference. The Valuation Office Agency bases pub values on turnover rather than rent. It estimates sales from drinks, food and accommodation. Then it applies industry percentages to calculate value.
As a result, strong trading performance can increase tax bills. However, operating costs may also rise at the same time. Therefore, pubs may pay more tax despite tighter profit margins.
How Business Rates Work for Pubs and Venues
To understand the impact, it helps to look at how a bill changes over time.
For instance, a pub with a rateable value increase from £30,000 to £39,000 may still see a similar or slightly lower bill in 2026/27 due to reliefs. However, future years may bring gradual increases.
This happens becasue:
- Relief schemes limit short-term increases
- Multipliers reduce slightly
- Discounts apply for a limited time only
New Multipliers for 2026/27
From April 2026, the government will introduce new multipliers for retail, hospitality and leisure businesses.
For pubs:
| Rateable Value | Multiplier |
|---|---|
| Under £51,000 | 38.2p |
| £51,000 to £499,999 | 43p |
| Over £500,000 | 50.8p |
Although these rates are lower than before, they do not replace the previous 40% discount. Therefore, many pubs will still pay more overall. In practice, rising property values often outweigh savings from lower multipliers.
Additional Relief for Pubs and Music Venues
In response to industry concern, the government announced extra support in January 2026.
Eligible pubs and live music venues will receive:
- A 15% discount on business rates in 2026/27
- An average saving of £1,650 per year
- A freeze on increases in real terms until 2029
This relief applies after other schemes, such as Supporting Small Businesses relief. The government designed this package to ease short-term pressure. Additionally, it aims to protect venues that play an important role in local communities.
Who Qualifies for the Relief?
The 15% discount only applies to specific venues.
Pubs must:
- Open to the general public
- Allow entry without a fee (in most cases)
- Permit drinking without requiring food
- Sell drinks at a bar
Live music venues must:
- Primarily host live performances
However, restaurants and nightclubs do not qualify, so many businesses in the wider hospitality sector will not benefit. Local authorities will also assess eligibility and final decisions may vary depending on each case.
Existing Relief Schemes
Two schemes will help limit increases after the revaluation.
Supporting Small Businesses (SSB)
- Caps how much a bill can rise each year
- Uses the 2025/26 bill as a starting point
- Sets a minimum increase cap of £800
Transitional Relief
- Limits increases for some properties
- Does not apply where SSB takes priority
Most pubs will fall under the SSB scheme, so increases will occur gradually rather than all at once.
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK tax laws and regulations are subject to change. Please speak to an accountant or tax professional for advice tailored to your individual circumstances. Pi Accountancy accepts no responsibility for any issues arising from reliance on the information provided.