Business rates relief for pubs shows pressure is working — but full reform is still needed

The Government is expected to announce business rates relief worth up to £300 million for pubs in the coming days, in what is being widely seen as a response to recent mounting pressure. 

In advance of the 2025 Autumn Budget, HOLBA has repeatedly warned that the new business rates rises, in addition to the latest revaluation, would place intolerable pressure on high street and town centre businesses. While transitional relief delays the impact, it does not reduce overall liability — the full bill still has to be paid. 

Business rates affect far more than pubs alone. From hotels, theatres and music venues to everyday services such as gyms, GP practices and nurseries, large parts of the experience economy and essential local services are set to see sharp increases in bills as a result of new property valuations and the withdrawal of reliefs. 

As a result, businesses across the UK remain exposed to significant cost increases, despite their vital role in supporting jobs, local economies and the health of town and city centres. 

This apparent U-turn — and reliance on a temporary, sector-specific fix — signals growing recognition within Government that the business rates system is fundamentally broken. 

HOLBA has been campaigning since early 2025 for a fairer business rates system that reflects the modern economy. The organisation was disappointed that the Autumn Budget 2025 failed to deliver on manifesto commitments to support the high street and level the playing field through meaningful reform. 

“It’s welcome that the Government appears to be recognising that the business rates reforms announced at the last Budget are untenable. This announcement shows that pressure from businesses and MPs across the country is starting to have an impact.  

“However, another temporary sticking plaster aimed at just one sector won’t be enough. Time and again, we’ve seen piecemeal responses like this, but they won’t fix a broken system or save our high streets.  

“In addition to pubs - hotels, theatres, galleries and visitor attractions as well as offices, gyms and many other types of business are all facing steep increases in their bills. 

“Labour promised fundamental reform of business rates. We need to level the playing field between online businesses, which pay minimal rates, and high street businesses, which are taxed based on the rateable value of their property. 

“That’s why HOLBA and others are calling for a Hybrid Business Rate, with a small levy on online sales to enable a cut of a third in bills for bricks-and-mortar businesses.”