Reactive (response to change)

Business rates: what the announced 20% discount for pubs, clubs and music venues means

The government has announced a 20% business rates discount for pubs, social clubs and live music venues in England, intended to apply from the 2027-28 billing year. The measure is not yet law, no rateable value thresholds have been published, and the exclusion for "the very largest" live music venues has not been defined. Detail is expected at the Budget.

Change event: Business rates: 20% discount announced for pubs, clubs and live music venues in England Effective 1 April 2027

Related guidance

Topics

Business Tax Overview Business Rates

What has been announced

On 23 July 2026 the government announced that pubs, social clubs and live music venues in England will receive a 20% discount on their business rates bills, intended to take effect from the 2027-28 billing year. The government put the number of properties in scope at nearly 32,000.

The announcement also stated that the 20% discount will not be made available to the very largest live music venues. It did not define what counts as "the largest", and no rateable value threshold has been published.

This sits alongside the permanent 5 pence cut to the business rates multipliers for retail, hospitality and leisure properties announced at Budget 2025.

This is an announcement, not law

No legislation has been made and no statutory instrument has been laid. The government has said further detail will follow at the Budget. Until then the scope, the qualifying conditions and the exclusion for larger venues are all subject to change.

Do not treat the 20% discount as a confirmed entitlement when setting prices, agreeing a lease, or preparing budgets or forecasts for 2027-28.

What was announced
A 20% discount on business rates bills
Who it is intended to cover
Pubs, social clubs and live music venues — around 32,000 properties
Stated exclusion
The very largest live music venues (not yet defined)
Intended from
2027-28 billing year
Where it applies
England only
Legal status
Announcement of intent — not yet law; detail expected at the Budget
Announced
23 July 2026

What is not yet known

Several points that determine whether an individual business benefits remain open:

  • Qualifying definitions. How "pub", "social club" and "live music venue" will be defined for rating purposes has not been set out. Mixed-use premises — a restaurant with a live music licence, for example — may or may not fall within scope.
  • The size exclusion. No rateable value ceiling has been published for the exclusion of the largest live music venues.
  • Interaction with existing relief. Whether the discount applies before or after other reliefs, and whether it counts towards any cash cap or subsidy control limit, has not been confirmed.
  • Mechanism. Whether the discount is delivered through the multiplier, through a discretionary relief scheme administered by billing authorities, or by another route.

What you can usefully do now

The discount itself requires no action, and there is nothing to apply for. What is worth doing is making sure the underlying rating position is correct, because any percentage discount is applied to a bill derived from your rateable value:

  • Check that your property's entry in the rating list describes it accurately, including its use.
  • Check whether you are already entitled to a relief you are not claiming — small business rate relief in particular.
  • If your rateable value looks wrong, the challenge route is unaffected by this announcement and runs to its own deadlines.

England only

Business rates are devolved. This announcement applies in England only. Scotland, Wales and Northern Ireland each operate separate systems with their own reliefs, multipliers and appeal routes, and are not affected by it.

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