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The government has announced changes to reduce planned increases in business rates for pubs in England, following sustained pressure from landlords and industry groups.
Ministers are understood to be preparing adjustments to how business rates for pubs are calculated, a move that would lead to smaller increases in bills than previously expected. The changes are expected to apply only to pubs, rather than the wider hospitality sector.
It comes as Treasury officials have acknowledged the financial strain facing many pubs after sharp increases in the rateable value of their premises, which had left operators facing significantly higher costs from April 2026.
The move follows a campaign by pub owners and trade bodies, which included more than 1,000 pubs banning Labour MPs from their premises in protest at the planned rises.
The Treasury is also thought to be considering changes to licensing rules, including allowing longer opening hours and expanding the use of pavement space for drinking.
In her November 2025 Budget, chancellor Rachel Reeves reduced the business rates discount for retail, hospitality and leisure properties from 75% to 40%, and confirmed that the relief would end entirely from April. That decision, combined with revaluations that increased the rateable value of many pub properties, prompted warnings of steep rises in bills.
Under current projections, the average business rates bill for a pub in England would rise from about £9,300 to £10,700 in 2026/27, before increasing to £13,700 in 2027/28 and £16,300 in 2028/29. That represents a total increase of £12,900, or 76%, over three years.
The wider hospitality sector faces even larger increases. Average rates for a hospitality property are expected to rise from £20,835 to more than £40k by 2028/29, while hotels are projected to see increases of more than 100% over the same period.
Kate Nicholls, chair of UKHospitality, said: “The entire hospitality sector is affected by these business rate hikes – from pubs and hotels to restaurants and cafes. We need a hospitality-wide solution, which is why the government should implement the maximum possible 20p discount to the multiplier for all hospitality properties.”
By contrast, business rates bills for distribution warehouses are expected to rise by about 16% over the three-year period, compared with increases of 7% for offices and 4% for large supermarkets.
