All pubs in England will get 15% off their business rates this year after weeks of warnings the sector faces a massive spike in the tax.
The Treasury has announced the move, which will be followed by a two-year real-terms freeze in rates, after many Labour MPs were barred from their local by furious landlords.
Over the Covid pandemic, hospitality firms were given a 40% discount on the rates to help them cope with the serious knock from lockdown.
At November’s Budget, Chancellor Rachel Reeves confirmed this temporary relief was coming to an end – leaving many businesses facing a steep hike in their costs.
She also announced a lower multiplier would be used to calculate the tax, but this move was more than offset by the increase in bills.
According to the Treasury, the new package of support will save the average pub an additional £1,650 in the coming financial year.
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It has been announced alongside a new High Streets Strategy due to be published later this year.
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.’
Meanwhile, pubs and other venues will get to open late into the night to show matches at the World Cup this summer.
The number of temporary events notices will be ramped up ahead of the big event, with both England and Scotland set to appear together for the first time since 1998.
Due to time zones, some games will be played eight hours behind UK time meaning they will start and end late for Brits.
However, there are concerns other hospitality businesses such as hotels, restaurants and cafes will miss out on support despite also facing a potentially catastrophic increase in the tax.
The average business rate bill for hotels in England is set to increase by 115% – or £111,300 – over the next three years, according to statistics from UKHospitality.
More than 20,000 fewer people were employed by the hospitality industry in December 2025 compared to the previous September, the body said – a figure it blamed on the rising tax burden.
Speaking at the World Economic Forum meeting in Davos last week, Reeves defended focusing the rates relief on pubs.
‘I do recognise the particular challenge that pubs face at the moment, and so have been working with the sector over the last few weeks to make sure that the right support is in place,’ she said.
‘I think the situation the pubs face is different from other parts of the hospitality sector.’
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