Thousands of pubs across England could benefit from lower business rates from April 2027, following new measures confirmed in the Autumn Budget 2026.
The government has announced additional support for Britain’s pubs, including increased business rates relief, higher thresholds for small businesses and protection against inflation-driven increases.
For pub landlords facing rising wages, energy costs and supplier prices, the changes could provide valuable financial breathing space.
According to the Treasury, the business rates support package will deliver an average reduction worth more than £3,000 per qualifying pub in 2027/28.
For some smaller pubs, the changes could go even further, removing their business rates bills entirely.
Business Rates Changes: At a Glance
- 35% business rates relief – Qualifying pubs in England will receive increased relief, up from 15%.
- Starts 1 April 2027 – The increased relief will apply in the 2027/28 and 2028/29 financial years.
- Over £3,000 in average savings – The Treasury estimates the overall relief will be worth more than £3,000 per qualifying pub next year.
- 3,500 additional pubs paying nothing – Thousands more pubs are expected to become exempt from business rates.
- £18,000 threshold for full relief – Qualifying small hospitality properties with a rateable value up to £18,000 could pay no business rates.
- Partial relief up to £21,000 – The upper threshold for tapered Small Business Rate Relief will increase.
- Two-year protection against inflation – Qualifying hospitality properties will have business rates bill increases capped at CPI inflation until March 2029, subject to exceptions.
1. Business Rates Relief for Pubs Increases to 35%
One of the most significant announcements for the pub industry is the increase in dedicated business rates relief.
Currently, qualifying pubs benefit from a 15% reduction in their business rates bills.
From 1 April 2027, that relief will increase to 35%, meaning eligible pubs will receive an additional 20 percentage points of relief.
What could this mean for your pub?
For example, if a pub has an annual business rates liability of £10,000 before the dedicated pub relief is applied:
| Annual rates | |
|---|---|
| Before pub relief | £10,000 |
| With 15% relief | £8,500 |
| With 35% relief | £6,500 |
| Additional annual saving | £2,000 |
This is a simplified illustration. Actual bills depend on the property’s rateable value, applicable multipliers, other reliefs and any transitional arrangements.
For pubs already operating on tight margins, additional savings could help fund staffing, equipment, improvements or other business costs.
2. Thousands of Smaller Pubs Could Pay No Business Rates
The Budget also increases the thresholds for Small Business Rate Relief for qualifying retail, hospitality and leisure properties in England.
From April 2027:
- The threshold for 100% relief rises from £12,000 to £18,000 in rateable value.
- The upper threshold for partial relief rises from £15,000 to £21,000.
- Qualifying businesses between £18,000 and £21,000 will receive tapered relief.
The Treasury estimates that an additional 3,500 pubs will pay no business rates at all as a result of the changes.
What is a rateable value?
Your pub’s rateable value is not the amount you pay in business rates.
It is a valuation determined by the Valuation Office, which local authorities use to calculate business rates bills.
For pubs, the valuation generally considers the level of trade a reasonably efficient operator could achieve, alongside factors such as location, facilities and operating costs.
For example, an eligible pub with a rateable value of £16,000 that would not currently qualify for full Small Business Rate Relief could potentially qualify for 100% relief from April 2027.
Important: Small Business Rate Relief is subject to eligibility conditions, including rules concerning businesses occupying more than one property. Not every pub below the threshold will automatically qualify.
3. Business Rates Bills Protected Against Inflation
The government has also confirmed a two-year real-terms freeze for qualifying retail, hospitality and leisure properties in England.
This means that, during 2027/28 and 2028/29, increases in eligible business rates bills will generally be capped at CPI inflation.
The measure is intended to provide greater certainty over future property costs.
However, the protection is not an absolute freeze. Bills may still increase with inflation, and exceptions apply, including certain changes to a property’s rateable value or the loss of other reliefs.
For landlords planning their finances, the additional certainty could make it easier to budget for staff, maintenance and investment.
4. Which Pubs Qualify for the 35% Relief?
The dedicated pubs relief applies to qualifying occupied pub premises in England.
Under the government’s existing eligibility criteria, a pub generally needs to meet the following conditions:
- Be open to the general public.
- Allow customers to enter without paying an admission fee, except for occasional entertainment.
- Allow customers to purchase and consume drinks without ordering food.
- Have a bar where drinks can be purchased.
Restaurants, cafés, hotels and certain other hospitality premises are not automatically eligible for the dedicated pub relief, although they may qualify for other business rates support.
Local authorities administer the relief and determine eligibility.
5. How to Check Whether Your Pub Could Save Money
Landlords should review their current rates position ahead of April 2027.
Step 1: Find your pub’s rateable value
Visit the government’s official business rates valuation service and search for your premises.
Step 2: Check your current business rates bill
Your local council’s business rates department will be able to confirm which reliefs are currently applied to your property.
Step 3: Review the new thresholds
If your pub has a rateable value of £18,000 or less, check whether you could qualify for full Small Business Rate Relief from April 2027.
If your rateable value is between £18,000 and £21,000, investigate whether you qualify for partial relief.
Step 4: Check your eligibility for pub relief
For pubs that remain liable for business rates, confirm whether the new 35% relief will apply.
Step 5: Plan for April 2027
Use your updated projected rates liability when preparing your business budget for the next financial year.
You can also read the government’s official guidance on pub business rates relief.
What Does This Mean for the Future of British Pubs?
The Budget’s business rates package comes at a time when many pubs are managing significant cost pressures.
Higher staffing costs, energy bills and the rising cost of drinks continue to affect profitability across the hospitality industry.
Lower business rates will not remove all these challenges, but they could reduce one of the significant fixed costs associated with operating a pub.
For smaller independent pubs, the expanded Small Business Rate Relief thresholds could be particularly important.
For larger qualifying pubs, the increase to 35% relief could release additional money for investment, maintenance or day-to-day operations.
The exact financial benefit will depend on each individual property and business.
More Changes Ahead for the Pub Industry
Business rates are not the only part of the Autumn Budget that pub operators should be aware of.
The government has also announced plans to introduce Guest Beer Rights, which could give eligible tied pub tenants greater freedom to stock beers outside their existing supply agreements.
For landlords, this could mean more opportunities to introduce independent breweries, local beers and rotating guest selections.
At Love Beer, we’re preparing to help pubs explore these opportunities.
With access to over 700 independent breweries and next-day delivery available, Love Beer is inviting tied pub operators to register their interest in future guest beer supply.
Register Your Pub with Love Beer – Guest Beer Supplier Enquiry
Guest Beer Rights are not yet in force. Future supply arrangements will depend on the final legislation, tenancy terms and eligibility.
This article reflects the UK Autumn Budget announced on 28 October 2026. Business rates measures described here apply to England. Relief eligibility and actual savings depend on individual circumstances and local authority administration.
Sources: UK Budget 2026 and Government business rates implementation guidance.