The Prime Minister announced a new 20% reduction in business rates for the hospitality sector, adding to an earlier 15% cut. The relief will apply to roughly 32,000 venues and is projected to save the average pub about £1,100 annually.
Government officials said the measure is funded by a review of reliefs for businesses deemed not to contribute positively to local communities. Further reforms to the business rates system, including small‑business relief, are slated for the upcoming budget.
Chef and pub owner Tom Kerridge described the £1,000 annual reduction as modest and insufficient, urging additional steps such as a lower VAT rate for hospitality.
Hotel proprietor Steve Perez noted that his business rates had risen by approximately 130% and that the £1,000 relief would not materially affect his operations. He highlighted additional cost pressures from national insurance and extended producer responsibility charges.
Owner of a regional pub group, Iain Hoskins, explained that a previous 15% cut applied to only one of his five venues because of naming criteria. His total rates bill ranges between £200,000 and £300,000, making the current relief a welcome but limited mitigation.
Industry data show that more than one in four late‑night venues have closed since 2020, reflecting growing challenges for pubs, clubs and music venues.
The Music Venues Trust called the relief an encouraging first step and pledged to work with the government to ensure grassroots music venues qualify for future support.
Business leaders reiterated calls for a reduction in the standard 20% VAT on hospitality, arguing that a lower rate would enable investment, job creation and higher corporate tax contributions.
The Prime Minister also announced removal of VAT from electricity bills and reinstatement of a £2 cap on single‑bus fares, presenting the package as a means to restore hope across communities.
In parallel, meetings with leaders of Scotland and Wales focused on devolution and cooperation, emphasizing growth in every postcode while avoiding constitutional referendums.
