Treasury announces support package for pubs

(Sharecast News) - The Treasury unveiled a three-year support package for pubs and live music venues on Tuesday worth more than £80m a year following a backlash over rising business rates. From April, pubs will get a 15% cut to new business rates bills, followed by a two-year real-terms freeze, as well as a review into the method used to value them for business rates.

The government said the package will save the average pub an additional £1,650 in 2026/27. Around 75% of pubs will see their bills fall or stay flat over the same year, with the pub sector as a whole paying 8% less in business rates in 2029 than they do currently.

Licencing reforms will mean pubs and other licensed venues will be able to open after midnight for Home Nations' games in the later stages of this summer's Men's FIFA World Cup. This will give fans more time at the pub while boosting takings behind the bar and supporting jobs in hospitality, the Treasury said.

The government is also bringing forward a consultation to allow them to open late for other big events such as Eurovision.

Chancellor Rachel Reeves said: "If we're going to restore the pride in our communities, we need our pubs and our high streets to thrive. We're backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced.

"Thriving local businesses, bustling high streets and pride restored in our communities - that's what this government is delivering."



Danni Hewson, head of finanial analysis at AJ Bell, said: "A cut of 15% and a freeze on the amount they pay for two years will be welcomed by many who'd been agonising over upcoming bills and considering whether it might be better to call time.

"However, it doesn't give the industry the long-term certainty needed to stoke investment. The inclusion of music venues will be seen as positive, but the government seems to have created a two-tier system, leaving the restaurants next door unsupported and high streets vulnerable.

"Promises of another high street strategy are only worth something if they deliver more than just blueprints with no way of ever getting off the table. Ultimately, the complex web of taxation with carve-outs and caveats must be simplified and work in tandem with other increased costs heaped on businesses, such as increases to employer NI and the minimum wage."