Business rate relief for eligible pubs and live music venues will be set at 15% in 2026, but some London venues were hoping for more after the government changed plans to scrap it entirely.
Originally extended as a temporary safety net in the COVID-19 pandemic, business rate relief for hospitality venues was due to end this year after falling from 75% in 2024 to 40% in 2025.
But while the news some relief will remain in place was greeted with cautious optimism, concern still lingers that it has not gone far enough.
A spokesperson for Dalton live music venue The Jago said: “[The business rate relief] is welcome news.
“However, we were hoping for 50% relief.
“But it’s an announcement in the right direction.”
Business rates, which are the tax on non-domestic property, have long been a pressure point for night-time venues.
The Music Venue Trust released their 2025 report in January stating that 53.8% of grassroot music venues across the UK did not make a profit in the last 12 months.
The government stated this relief will be on top of any Transitional Relief or Supporting Small Business Relief the venues are already eligible for, and business rate bills will then be frozen in real terms for a further two years.
Chancellor of the Exchequer 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.”
Yet while the Treasury’s announcement offers a glimmer of hope, night-time venues are still bracing for further closures and financial pressures.
Feature image: Rachael Cooper
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