Pubs, clubs, and live music venues in England are getting a 20% cut to business rates starting in April, a move the government estimates will save the average establishment about £1,100 next year. In his third policy announcement since becoming prime minister, Andy Burnham declared, 'For too long, governments have stood by while cherished venues have disappeared from our local high streets.' The £100 million cost of this cut will be funded by reviewing tax relief on less beloved establishments like vape shops, which the government says 'do not make a positive contribution to local communities.' Because nothing says 'community spirit' like taxing the vapers to save the pubs.

Hospitality bosses welcomed the support, though some pub owners weren't exactly popping champagne. Iain Hoskins, who owns Ma Pub Group in Liverpool, told the BBC the relief would help 'chip away' at rising costs but questioned how many venues would actually benefit. 'It could be very meaningful,' he said, 'but as always, the devil is in the detail.' His pubs have previously missed out on government support, and 'the increases were so huge last year that now we're sort of chipping away at some of those increases.'

Under former chancellor Rachel Reeves, the government had previously scaled back pandemic-era discounts and announced no discount at all from this April, leaving landlords staring at much higher bills. After the hospitality industry raised a ruckus, the government cut business rates for pubs and music venues by 15% earlier in 2026. The new 20% discount will stack on top of that existing support, because apparently stacking discounts is the only kind of stacking the government encourages.

However, the 20% discount won't apply to the 'very largest' live music venues. Details on eligibility are coming at Chancellor John Healey's first Budget in the autumn. The government expects about 32,000 venues to benefit. Steve Perez, founder of Global Brands and owner of two hotels, was less than thrilled: 'This won't make any material difference to any pub.' UK Hospitality's chief executive, Allen Simpson, called Burnham's plans 'a good start' that 'suggests that his affection for hospitality has survived the trip down the M1,' but added it's 'not for everybody in hospitality.' The Night Time Industries Association's Michael Kill said the tax break could provide 'meaningful relief' but noted questions remain about excluding the largest venues.

The business rates change is the latest in Burnham's series of 'breathing space' measures, following a 5% VAT cut on electricity bills and capping bus fares at £2 in England outside London. To fund the rate cut, the government will also 'crack down' on businesses selling through online marketplaces that 'do not comply with their tax obligations.' The Federation of Small Businesses called Thursday's announcement 'a downpayment on action that reaches across the small business community,' with policy chief Tina McKenzie saying the plans fix damage from past rates decisions that were 'holding back small business growth and jobs in every postcode.'