British pubs will save an average of £1,650 annually under a business rates relief package announced by Chancellor Rachel Reeves, as the government moves to address declining numbers across the sector.
The Treasury confirmed that approximately 75% of pubs will see their business rates bills either fall or remain unchanged in the coming year. The sector as a whole is expected to pay 8% less in business rates by 2029 compared to current levels.
From April, eligible pubs will receive a 15% reduction on their business rates bills, followed by a two-year freeze in real terms. The measures come as the industry has seen nearly 7,000 establishments close since 2010, representing roughly a 15% decline in total numbers.
The government has also committed to reviewing the methodology used to calculate business rates valuations for pubs. Industry representatives have raised concerns about how costs are accounted for under the current system, particularly during periods of high inflation.
Unlike most retail properties which are valued by comparing physical size, pubs are currently assessed based on their turnover potential. The review will involve businesses, their representatives and valuation experts, with any changes implemented for the 2029 revaluation.
Licensed premises will gain extended opening hours for England and Wales home nation matches during the latter stages of this summer’s Men’s FIFA World Cup. Venues can remain open until 1am for quarter-finals, semi-finals or the final if matches start at or before 9pm, without needing to apply for a Temporary Event Notice.
The government will also legislate to increase the number of temporary events pubs can host, enabling them to screen additional World Cup fixtures or stage community and cultural activities. A consultation will explore extending opening hours for other major events such as Eurovision.
A £10 million Hospitality Support Fund will operate over three years, tripled from the £1.5 million single-year allocation announced last April. The funding aims to assist over 1,000 pubs in providing additional community services including cafes, village stores and play areas.
Planning regulations will be relaxed in the spring, allowing pubs to add guest rooms or expand premises without local planning applications. The government confirmed it will work with the sector to ensure similar flexibilities apply to other retail, leisure and hospitality businesses.
A cross-government High Streets Strategy will be published later this year following consultation with businesses and representatives. The initiative recognises challenges posed by changing consumer habits, increased home working and online shopping over the past decade.
Grassroots live music venues operating as pubs will also benefit from the 15% business rates reduction and subsequent freeze. Hotels are subject to a separate review of their business rates valuation methodology.
The measures apply to England only but will generate Barnett consequentials for devolved administrations.
