UK prime minister announces 20% business rates cut for pubs and music venues

· Politics GBR
Part of UK Cost of Living Measures

British Prime Minister Andy Burnham has announced a 20% reduction in business rates for pubs, clubs and live music venues in England, taking effect from April 2027. The £100 million package will apply to nearly 32,000 hospitality businesses and is expected to save a typical pub roughly £1,100 annually.

The government said the measure is fully funded through a review of tax reliefs for businesses such as vape shops and a crackdown on online marketplaces failing to meet tax obligations. The discount builds on a 15% relief introduced earlier in 2026. Burnham also outlined a reduction in VAT on electricity bills averaging £45 a year from October 2026, financed by scrapping the digital ID scheme.

Burnham is meeting Scottish First Minister John Swinney and Welsh First Minister Rhun ap Iorwerth in Glasgow on Wednesday. Separately, broadcaster Gary Lineker is among 120 UK-based millionaires urging the prime minister to impose higher taxes on their wealth in an open letter.

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