Business Rates for pubs and venues changed on 1 April 2026. New property valuations, lower tax rates and fewer discounts now affect hospitality businesses across England.
Why Business Rates for Pubs and Venues Changed
Business rates are a tax on commercial properties. Local councils collect the tax, while the Valuation Office Agency (VOA) sets each property’s rateable value. A rateable value broadly reflects the property’s estimated annual rental value. A multiplier then determines the basic tax charge.
Rateable value x multiplier = basic Business Rates bill
Every three years, the VOA updates property valuations. The latest revaluation took effect on 1 April 2026 and covers the period until 2029.
Three changes how affect many pubs and venues:
- The previous 40% retail, hospitality and leisure discount ended on 31 March 2026
- New lower multipliers replaced the previous system
- The revaluation increased rateable values for many premises
Consequently, a lower multiplier does not always mean a lower bill.
Why Pubs Faced Larger Increases
The 2026 revaluation increased average rateable values for pubs more sharply than many other properties.
| Standard pubs | 30% average increase |
| Pubs with accommodation | 70% average increase |
| All properties in England | 19.4% average increase |
These figures describe the average changes, not every individual pub. The VOA usually assesses pubs using their potential annual sales.
It considers:
- Drink sales
- Food
- Accommodation
- Other trading activities
It then applies a percentage that reflects operating costs and potential profitability. Therefore, higher expected sales can increase a pub’s rateable value. However, higher sales do not guarantee higher profits. Staffing and supplier costs can all reduce the money an owner keeps.
New Business Rates for Pubs and Venues
England now uses five Business Rates multipliers. The following three generally apply to qualifying retail, hospitality and leisure premises.
| Rateable Value | Multiplier |
|---|---|
| Below £51,000 | 38.2p per £1 |
| £51,000 to £499,999 | 43p per £1 |
| £500,00 or more | 50.8p per £1 |
Other businesses use different multipliers. Additionally, some properties face a temporary extra 1p charge during 2026/27. This extra charge does not apply when a business receives Transitional Relief or Supporting Small Business Relief.
Business Rates Relief for Pubs and Venues
The government introduced a 15% Business Rates discount for eligible pubs and live music venues in 2026/27. This discount follows other qualifying reliefs, including Supporting Small Business Relief. The government estimates an average saving of £1,650 per pub during 2026/27.
It also promised to limit bill increase to inflation during 2027/28 and 2028/29.
Further Support From April 2027
In July 2026, the government announced an additional 20% reduction for qualifying premises from April 2027.
The government expects the new measure to cover pubs, eligible social clubs and most live music venues. However, it plans to exclude the very largest music venues.
Further guidance will explain the detailed rules.
Which Pubs and Music Venues Qualify for Relief
To qualify for the 15% discount, a pub must:
- Open to the general public
- Normally allow free entry (except for occasional entertainment)
- Allow customers to drink without buying food
- Sell drinks at a bar
A live music venue must mainly host live performance for an audience. It can also sell food or drinks alongside those performances.
However, scheme excludes businesses that mainly operate as restaurants, nightclubs or theatres. A hotel does not qualify simply because it has a bar. Local councils assess the circumstances of each property.
Other Relief Schemes
Two existing schemes can also protect businesses from sudden increases.
Supporting Small Business Relief
This scheme helps businesses that lose certain previous discounts after the revaluation. For 2026/27, it limits qualifying increases to £800 or the relevant percentage cap, whichever is higher. The calculation starts with the 2025/26 bill and also follows specific rules.
Transitional Relief
This scheme limits certain increases following the revaluation. The percentage limits depend on the property’s rateable value. However, Supporting Small Business Relief takes priority when a business qualifies for both schemes.
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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.