Business rates have become an increasingly significant cost for hospitality and leisure businesses, with many facing higher bills from April 2026 following the latest business rates revaluation and the withdrawal of Covid-era relief.
The government has introduced additional support for pubs and live music venues, including a 15% business rates discount for 2026/27, followed by a 20% discount in 2027/28, subject to further detail.
For those that qualify, the support will be welcome. However, the narrower eligibility criteria mean many other hospitality businesses facing the same pressures will miss out.
During 2025/26, retail, hospitality and leisure businesses in England could qualify for a 40% discount on their business rates.
The replacement relief is considerably more targeted. The 15% discount for 2026/27 and 20% discount for 2027/28 will apply to pubs and live music venues, with the discounts applied on top of other available business rates reliefs.
The government estimates that almost 32,000 pubs and live music venues will benefit, with a typical pub expected to save around £1,100 in 2027/28.
There is also an important distinction for larger live music venues. They are not expected to qualify for the 20% discount, with further details due to be announced in the Autumn Budget.
For restaurants, cafés and hotels, however, the position is less favourable. Despite facing many of the same cost pressures, these businesses have been excluded from the latest discounts.
The headline discounts are only part of the picture and smaller businesses should check whether they qualify for other forms of relief.
In England, premises with a rateable value of £12,000 or less can qualify for 100% Small Business Rate Relief, with tapered relief available for properties with a rateable value of up to £15,000.
Many businesses that have lost the previous retail, hospitality and leisure discount may also qualify for Supporting Small Business Relief (SSBR).
The calculations can be complex, but the scheme is designed to limit sudden increases in business rates bills. For example, in 2026/27 the increase for qualifying properties with a rateable value between £20,001 (£28,001 in London) and £100,000 is capped at the higher of £800 or 15%. Further caps will apply in 2027/28 and 2028/29.
Pubs and live music venues will receive additional protection, with their business rates bills limited to inflationary increases during 2027/28 and 2028/29 alongside the new 20% discount.
For pubs and qualifying music venues, the additional relief provides some valuable breathing room at a time when operating costs remain challenging.
However, the increasingly targeted nature of business rates support creates a very different picture across the wider hospitality and leisure sector. A pub and a restaurant operating in the same town may face similar pressures from wages, utilities and property costs, yet receive very different levels of business rates support.
That makes it particularly important for business owners not to look solely at the headline discount. Understanding your property’s rateable value and checking every relief available could make a meaningful difference to your overall bill.
Businesses should also consider future business rates costs as part of their wider budgeting and cash flow forecasts, particularly where existing relief is reducing or coming to an end.
Further details of the 15% business rates discount for pubs and live music venues for 2026/27 can be found on the government’s website here.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
