Public Houses: Business Rates

The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in the manifesto.

The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.

The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Around a third of properties pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional 85,000 benefiting from reduced bills as this relief tapers.

If a property loses eligibility for SBRR at the 2026 revaluation because their rateable value exceeds the threshold, the Supporting Small Business scheme will cap their bill increases for three years at the higher of £800 per year, equivalent to £65 per month, or the relevant Transitional Relief caps. These caps are applied before changes in other reliefs and local supplements.