Dying of the pint: support announced for English pubs

The Treasury has unveiled almost £100m for pubs and live music venues in England and Wales, in a bid to ease pressures surrounding spiralling business rates. 

In the November budget Chancellor Rachel Reeves announced changes to business rates, which understandably sparked concern across the hospitality sector, particularly in pubs. 

The package, finalised this week, includes a 15% reduction in new business rates for every pub in England and Wales from 1st April 2026. Bills will then be frozen in real terms, taking inflation into account, for the following two years. 

Dan Tomlinson, Exchequer Secretary to the Treasury, said: ‘This support is worth £1,650 for the average pub just next year, and will mean that around three-quarters of pubs will see their bills either fall or stay the same next year.’ 

In the meantime, the government plans to review the methodology for calculating pub rates amid claims of unfair treatment. Licensing rules will be relaxed, allowing for extended opening ours and easier expansion, though the VAT rate on alcohol will stay the same. 

Arguably, the news couldn’t have come at a better time as pubs have faced mounting financial pressures from rising energy costs, minimum wage increases and higher national insurance contributions. Research from UKHospitality estimates an average 76% rise in pub business rates over the next three years, while hotel rates could increase by 115%.

Speaking at the World Economic Forum in Davos last week, Rachel Reeves said: ‘I do recognise the particular challenge that pubs face at the moment, and so have been working with the sector over the last few weeks to make sure that the right support is in place. I think the situation the pubs face is difference from other parts of the hospitality sector.’ 

News of the funding follows research from the Federation of Small Businesses (FSB), which found that over the next three years, small shops, cafes and hairdressers in England could face average bill increases worth 52%. 

Image: Eric Tompkins/UnSplash

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