Government unveils business rates cuts and late licensing boost for pubs

The Chancellor has announced a package that she expects to save the average pub an extra £1,650 in 2026/27, with around three‑quarters of pubs seeing their business rates bills fall or stay flat next year. The measures include a 15% cut to new business rates bills from April, followed by a two‑year real‑terms freeze, alongside a review of how pubs are valued for rates. However, this discount applies to the rates as calculated under the rerated value from 1 April 2026, so businesses whose values will increase significantly will still see increased bills.

The government will also pilot a new High Street Strategy to support retail, leisure and hospitality businesses, and consult on loosening planning rules so pubs can add guest rooms or expand trading space more easily. A £10 million Hospitality Support Fund over three years will help more than 1,000 pubs offer extra community services, such as cafes, village stores and play areas, and support people furthest from the labour market into hospitality jobs.

Licensing rules will be temporarily relaxed so pubs and other venues can open after midnight for Home Nations’ matches in the later stages of this summer’s Men’s FIFA World Cup, with a consultation to follow on similar extensions for major events such as Eurovision. The government also plans to legislate to increase the number of temporary events pubs can hold to screen matches or host community and cultural events.

The package builds on a wider £4.3 billion support programme for business rates, including a cap on bill increases from April and a permanent 5p cut in the business rates multiplier for over 750,000 retail, hospitality and leisure properties, funded by a higher rate for the top 1% of properties. Grassroots live music venues that operate as pubs will also be included in the new reliefs, though business rates remain a devolved matter and it will be for the Scottish, Welsh and Northern Irish administrations to decide whether to match the support.