The Treasury confirmed an additional 3,500 pubs would pay no business rates under the expanded Small Business Rates Relief scheme, equivalent to approximately one in 10 of England’s estimated 37,000 pubs.
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The 3,500 pubs are in addition to those already eligible for full Small Business Rates Relief.
How many pubs will benefit?
The Budget increased the rateable value threshold for 100% Small Business Rates Relief from £12,000 to £18,000, while the upper threshold for tapered relief will rise from £15,000 to £21,000.
The 3,500 pubs are among 70,000 retail, hospitality and leisure properties expected to become exempt from business rates from April 2027.
The Government said half of all properties across those sectors would pay no business rates from April 2027, although it has not published an equivalent figure specifically for pubs.
The 9.5% estimate is based on the additional 3,500 pubs benefiting from the changes compared with the estimated number of pubs in England, using Treasury figures provided to Parliament earlier this month.
However, the Treasury has not confirmed how many pubs will still pay business rates following the changes.
What about pubs still paying rates?
For pubs that remain liable, the Government has confirmed business rates relief will increase from 15% to 35% from April 2027, following Prime Minister Andy Burnham’s announcement in July.
The Treasury estimates the wider package will deliver average savings of more than £3,000 per pub next year.
Qualifying retail, hospitality and leisure properties will also see business rates bill increases capped at CPI inflation for the next two financial years.
However, Small Business Rates Relief is primarily aimed at businesses occupying a single property, meaning multi-site operators may not qualify for the full exemption even where individual premises fall below the new rateable value threshold.
The changes come as the Government continues its review of how pubs and hotels are valued for business rates, with recommendations expected to inform the next revaluation in 2029.
