The new Prime Minister, Andy Burnham, has announced a 20% cut in business rates for nearly 32,000 hospitality businesses in England, a move that is expected to save the average pub around £1,100 a year.
The discount comes on top of the 15% cut introduced in January and will apply to pubs, clubs, and live music venues across the country. This announcement has been welcomed by the nightlife industry, which has struggled since the onset of the Covid pandemic.
Data released in August 2025 showed that more than one in four late-night venues had shut down since 2020, with the Music Venues Trust describing the move as an "encouraging first step". The government will work with the trust to ensure that all grassroots music venues in England are recognized and eligible for the new rates.
The tax cut will be funded by a review of reliefs given to businesses that do not make a positive contribution to local communities, such as vape shops.
Mr Burnham has also pledged to raise taxes on out-of-town warehouses for online giants such as Amazon to help pay for cuts to rates for hospitality firms. The government will look to set out further reform to the wider business rates system, including small business rates relief, at the Budget.
The Prime Minister has made several measures aimed at cutting costs for the public and communities since entering Downing Street on Monday, including plans to remove VAT from electricity bills and reinstate a £2 cap on single bus fares across England.
Chancellor of the Exchequer John Healey said that pubs, clubs, and live music venues are at the heart of communities across the UK and that the government is determined to bring hope back and give businesses the support they need.
Iain Hoskins, owner of Ma Pub Group in Liverpool, expressed doubt on how many venues would be covered by the change, citing his own experience where only one of his five venues qualified for the previous 15% cut because it didn't have the word "pub" in its name.
Mr Hoskins stated that the increases were so huge last year that the 20% relief is just a small step in mitigating the costs, but added that it is a relief nonetheless.
The Prime Minister will meet the leaders of Scotland and Wales for the first time since becoming Prime Minister when he travels to Glasgow later on Thursday. He backs further devolution but both First Minister of Scotland John Swinney and the First Minister of Wales Rhun ap Iorwerth want independence for their countries.
Ahead of the meetings, the Prime Minister said that he is focused on delivering growth and wants practical measures to help people live well and bring back hope. He emphasized that every place and every person matters and that he is not focused on point scoring or discussing constitutional changes.
