What does the Government’s surprise support for business rates mean for pubs?

Pubs are about to feel the pressure of rising costs once again as the Autumn Budget’s business rate changes come into effect.

These reforms have faced backlash from businesses and the Government has decided to do something about it.

In a surprise U-turn, they have announced a 15 per cent reduction in business rates bills for pubs.

Although this is a step in the right direction, pub owners must be sure of what this means for them and how they can benefit from the available reliefs.

What are business rates?

Business rates are taxes charged on most non-domestic properties, including pubs.

They are calculated based on the property’s rateable value, which is set by the Valuation Office Agency (VOA).

Your business rates bill is calculated by multiplying the rateable value by a multiplier, set annually by the Government.

There are two main multipliers, this includes:

• The standard multiplier
• The small business multiplier, which applies to lower-value multipliers

What changes did the Autumn Budget bring to business rates?

The Autumn Budget 2025 confirmed that the annual business rates multiplier in England will reduce by between 11.7 per cent and 13.5 per cent.

However, rising rateable values and tapering reliefs will mean that many businesses are once again faced with costly bills.

From April 2026, Retail, Hospitality and Leisure (RHL) relief will also reduce once again.

Properties with a rateable value of up to £51,000 will receive around 20 per cent relief, while those between £51,000 and £500,000 will receive 10 per cent relief.

This follows on from relief being cut in half from 75 per cent to 40 per cent in 2025/26 and many pub owners may struggle to come to terms with the changes.

Properties with a rateable value exceeding £500,000 will also face a super supplement of around 5.8 per cent, which will increase their liabilities even further.

How is the Government supporting pubs?

After backlash from many businesses, the Government has announced a new lifeline for pubs and live music venues.

From April 2026, eligible pubs will now receive a 15 per cent cut to their new business rate bills and this will be frozen for two years.

The Government has also committed to a review of how pubs are valued before the next revaluation in 2029.

How can pubs prepare for these changes?

With the changes to rates and reliefs fast approaching, pubs must prepare now to avoid unexpected costs and protect their cash flow.

Pub owners must:

• Review how their rateable value has been calculated and whether it reflects the current trading conditions
• Check their rates bills to see if all available reliefs have been applied correctly
• Prepare for the expiry of temporary reliefs when forecasting their cash flow
• Budget for potential increases, especially if the property rises above the £500,000 threshold

How can pubs plan ahead?

The new support provides short-term breathing space, but it does not resolve the underlying problems in the business rates system.

If you are unsure of how to manage the rising costs and make the most of the available support and reliefs, you should seek financial support now.

Our professional team can support you with budgeting and cash flow forecasts to help your business thrive during these uncertain times.

For further advice or support, contact our team today.