Pubs Face Large Increases in Business Rates from April 2026 Despite Relief Measures
From April 2026, the rateable values for pubs across England and Wales will be recalculated, resulting in significant increases in their business rates despite a three-year taper relief.
For example, the George pub, operated by Longbow Venues, sees its rateable value rise from £49,000 to £205,000, with its rates bill increasing from £24,451 to £88,150 by 2029.
Similarly, the Three Hills pub in Bartlow, Cambridgeshire will face a rates bill rise from £12,814 to £22,626 by 2028, escalating to £28,595 once relief ends.
Across the sector, UK Hospitality warns these rises will force venues to cut jobs, increase prices, and in many cases close, with small venues collectively facing a £318 million combined increase over three years.
On average, the projected rate increases are 115% for hotels and 76% for pubs, in stark contrast to rises of just 4% for large supermarkets and 7% for distribution warehouses.
In response, Chancellor Rachel Reeves announced measures including a cap on the tax for smaller businesses, funded by a levy on properties valued at £500,000 or more. This cap is expected to reduce the business rates for a typical independent pub by about £4,800 next year.
Pub owners report that cost pressures—such as employment, energy, and overheads—are rising and cannot be fully passed on to customers. For instance, the Old Thatch pub in Wimborne, Dorset has a rateable value increasing by 126%, from £18,620 to £36,190 by 2028. Its owner, Andy Lennox, has led a 'No Labour MPs' campaign using stickers to protest the increases.
The government has introduced a £4.3 billion support package for pubs, restaurants, and cafes, stating that without intervention, pubs would face a 45% rise in business rates. Measures include a cut in draught beer duty, eased pavement licences and event arrangements, and a capped corporation tax. Valuations are based on fair maintainable trade, although the last update was in earlier years.
