New Business Rates Relief for Pubs and Live Music Venues: What You Need to Know

The government has released updated guidance on a new business rates relief scheme for pubs and live music venues in England, set to apply from the 2026/27 tax year.

For eligible businesses, this could provide meaningful cost savings over the next three years.

What is the new relief?

As announced earlier this year, qualifying properties will benefit from:

• A 15% reduction in their 2026/27 business rates bill

• A freeze in real terms for rates bills in 2027/28 and 2028/29
  

While further detail on how the freeze will operate is expected, the relief offers a degree of financial certainty for businesses in these sectors.

Which properties qualify?

To be eligible, the property must be occupied and used wholly or mainly as either:

• A pub

• A live music venue
  

Understanding how your property is classified will be key to determining eligibility.

What counts as a pub?

A property will generally qualify as a pub if all of the following apply:

• It is open to the general public

• Entry is free (except for occasional entertainment)

• Customers can purchase drinks without ordering food

• Drinks are sold at a bar
  

Restaurants, cafés, nightclubs and hotels are unlikely to qualify under this definition.

What counts as a live music venue?

To qualify as a live music venue, the property must be mainly used for live performances intended to entertain an audience.

Additional activities - such as serving food and drink - will not normally affect eligibility. Occasional alternative uses, such as hosting community events, are also unlikely to disqualify a venue.

However, premises primarily used as nightclubs or theatres are unlikely to meet the criteria.

In some cases, there may be grey areas - particularly when distinguishing between live and recorded music. In these situations, guidance from the Licensing Act 2003 will be used.

How much could you save?

The relief is calculated daily and applied at 15% of the business rates charge for each qualifying day.

Key points to note:

• The discount is applied after other reliefs

• There is no cap on the amount of relief available

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What should businesses do now?

Local authorities will apply the relief automatically once their local schemes are in place.

However, it is worth taking a proactive approach:

• Review how your property is currently described and classified

• Ensure your usage aligns with the eligibility criteria

• Identify any potential grey areas early
  

Our view

This relief is a welcome measure for hospitality and live entertainment businesses that continue to face cost pressures.

While the process should be automatic, ensuring your business clearly meets the criteria will help avoid delays or missed opportunities.

At SJC, Chartered Accountants we can help you review your position and ensure you are making full use of the reliefs available.

If you would like advice on your business rates or wider tax position, please get in touch.