Retail industry bodies have welcomed the government's decision to cut business rates for pubs, clubs and live music venues but warned that wider high street businesses must also receive support to stem rising shop closures and protect local economies.
Prime minister Andy Burnham announced on Thursday that eligible pubs, clubs and live music venues in England will receive a further 20 per cent reduction in their business rates bills from April 2027, in addition to the 15 per cent relief already announced.
The government said the measure would save a typical pub around £1,100 a year, benefiting almost 32,000 venues at a cost of around £100 million. The package will be funded through a review of business rates relief currently available to other businesses, including vape shops.
The British Independent Retailers Association (Bira) said the move risked leaving other high street businesses behind.
“Once again pubs, clubs and music venues are being given special treatment on business rates,” said Andrew Goodacre, chief executive of Bira.
“My question is straightforward. What about the rest of the high street, when other businesses have seen a 15 per cent increase this year and their business rates bill more than double since 2024? If the prime minister is serious about revitalising high streets, he cannot only support pubs in this way.”
Goodacre added that 17,000 shops closed in 2025 and warned that more closures and job losses would follow if independent retailers continued to be overlooked.
Small Business Britain also called for broader support, describing the announcement as a positive first step.
Michelle Ovens, founder and chief executive of Small Business Britain, said pubs, social clubs and live music venues were important anchors for local high streets, but stressed that the government's commitment should extend to the wider small business community.
“Many of the UK's 5.7 million small businesses are based on our high streets, and this should be the start of wider support for businesses that are so vital to our local communities,” she said.
She added that while summer can provide a welcome boost for many retailers, it also brings additional pressures, and called for continued investment to help local businesses and the communities they serve thrive.
“As we head towards the final quarter of the year, it's positive to see the prime minister’s commitment to supporting businesses people want to see on their high streets, and we look forward to seeing that commitment backed by continued investment that enables local businesses and the communities they serve to thrive,” she said.
The Federation of Small Businesses (FSB) said the announcement was an encouraging signal ahead of the Autumn Budget but urged ministers to ensure reforms benefit all small firms.
Tina McKenzie, the FSB's policy chair, said the government should deliver “a significant increase in Small Business Rate Relief” to reverse recent increases in business rates that have held back growth and employment.
“Today's initial package for pubs and live music venues is welcome but must be a downpayment on action that reaches across the small business community to make a positive, sustained difference in all our local communities,” she said.
The business rates announcement is the third economic policy unveiled by Burnham this week, following plans to cap most bus fares in England at £2 from January and cut VAT on household electricity bills from October.