Business rates cut 20% for pubs, clubs and live music venues from 2027/28

The government has announced a 20% cut in business rates bills for pubs, social clubs and live music venues in England, taking effect in the 2027/28 tax year (from April 2027).

What was announced

Around 32,000 pubs, social clubs and live music venues will get a 20% discount on their business rates bill from 2027/28, saving a typical pub about £1,100 a year. The government has said the new discount will not be available to the very largest live music venues, with the exact qualifying criteria to be confirmed at the Budget.

It stacks on top of existing relief

This is additional support, not a replacement. It comes on top of:

• a 15% relief for these venues announced in January 2026, and a two-year freeze on bills in real terms;
• the separate retail, hospitality and leisure (RHL) multipliers that already cut business rates for the wider sector from 2026/27 - explained in our business rates 2026/27 guide.

So a qualifying pub benefits from the RHL multiplier, the existing relief, and the new 20% discount together.

How it is paid for

The government put the package at around £100 million a year, funded by reviewing reliefs for businesses that “do not make a positive contribution to local communities” (it named vape shops as an example) and by cracking down on non-compliant online marketplace sellers.

What to do

There is nothing to apply for separately - business rates relief is applied to your bill by your local council. If you run a qualifying venue, check that the discount is showing on your 2027/28 bill when it arrives, and query it with the council if it is not. Full detail, including the treatment of the largest music venues, is expected at the Budget.