UK government announces relief for pubs, live music venues on property taxes

After signaling earlier this month that it would seek to soften the impact, the government confirmed a new set of measures on Tuesday.

Published on: Jan 27, 2026, 22:38:14 IST

By HT News Desk

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The British government on Tuesday moved to ease pressure on the struggling hospitality sector, announcing a support package for pubs and live music venues to offset planned rises in property taxes that had triggered widespread backlash last year.

An "Open" sign in the window of a restaurant near Liverpool Street in the City of London, UK, on Tuesday, Jan. 27, 2026. (Bloomberg)

While pubs have been in long-term decline, driven partly by changing drinking habits and demographics, they continue to occupy a centuries-old place in British social life and national identity.

Also Read | Pub Owners Turn Against Government in Britain’s Latest Rebellion

Closed pubs, landlords banned Labour lawmakers

Proposed hikes in commercial property taxes announced in November’s budget sparked a backlash from the industry, with warnings of widespread closures and even a group of more than 1,000 landlords banning Labour Party lawmakers from their premises, according to a Reuters report.

After signalling earlier this month that it would seek to soften the impact, the government confirmed a new set of measures on Tuesday.

“From April, every pub in England will get 15% off its new business rates bill on top of the support announced at budget. Pub's bills will then be frozen in real terms for a further two years,” Treasury minister Daniel Tomlinson told parliament, the report added.

“This support is worth 1650 pounds ($2,265.62) for the average pub just next year, and will mean that around three quarters of pubs will see their bills either fall or stay the same next year.”

Part of reversals by Starmer government

The dilution of the tax rise marks the latest in a series of partial or full reversals by Prime Minister Keir Starmer’s government.

Facing a sluggish economy and slipping poll numbers, Starmer has been attempting to raise revenue to balance public finances while improving services.

Earlier reversals, prompted by pressure from within the Labour Party and from voters, include proposals to increase taxes on farmers, cut welfare spending, and reduce energy bill subsidies for the elderly.

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