Proposed business rates cut ‘must be extended’, retail leaders say

The UK government’s proposed 20% business rates cut for pubs, clubs and live music venues “must extend beyond a single segment of hospitality”, industry leaders have said.

The policy is the latest announcement from the new Prime Minister Andy Burnham and could save a typical pub an estimated £1,100 in tax per year, according to BBC reports.

The business rates cut will be implemented from April 2027 and will cost around £100 million, funded by a review of tax reliefs given to other businesses, such as vape shops.

Julia Lo Bue-Said, Advantage Travel Partnership chief executive and spokesperson for the UK Outbound Travel Group, said the policy was “welcome recognition of the pressures facing businesses that are central to the UK’s economy”, but questioned where the support was for other sectors of the hospitality industry.

Lo Bue-Said argued: “If policymakers are serious about unlocking the full potential of the UK’s economy, support must extend beyond a single segment of hospitality."

She added: “Our visitor economy is an interconnected ecosystem.

“Travel agents, tour operators, hotels, restaurants, attractions, transport providers and hospitality businesses all rely on one another to drive economic growth.

“Supporting one part of that ecosystem while overlooking others risks limiting the overall impact.”

The British Independent Retailers Association (Bira) echoed the sentiment as it called for wider business rates relief for the high street.

Bira works with more than 6,000 independent retailers across the UK and said businesses “have been left behind” by the new policy.

Andrew Goodacre, Bira chief executive, said: "Once again pubs, clubs and music venues are being given special treatment on business rates. This follows the discount they were given after last year’s disastrous changes to the system.

“My question is straightforward. What about the rest of the high street, when other businesses have seen a 15% increase this year and their business rates bill more than double since 2024?”

He added: “If the prime minister is serious about revitalising high streets, he cannot only support pubs in this way. Seventeen thousand shops closed in 2025, plus many thousands of jobs lost, and that number will keep rising if these businesses continue to be overlooked.”