Public Houses: Rural Areas

The value of the Great British pub is clear - culturally, socially and economically. Pubs are important places of community and friendship, they foster community pride, and this Government wants to protect them.

Recognising the value pubs bring and the challenges they face, on business rates the Government has introduced a 1-year 15 per cent relief for all pubs and live music venues in 2026/27, on top of the existing support package announced at Budget. This means around three quarters of pubs see their bills either falling or remaining the same in 2026/27.

For the following two years, their bills will then be frozen in real terms. As a sector, pubs will pay 8 per cent less in business rates in 2029 than they did in 2025/26.

Rural pubs meeting certain conditions continue to benefit from 100 per cent relief from business rates through Rural Rate Relief.

The Government also recognises the pressure high energy costs place on businesses. The main reason why businesses’ energy costs remain high is because wholesale prices remain significantly higher than their historic levels, since the Russian invasion of Ukraine.

Over the long term, shifting away from volatile fossil fuels towards clean, homegrown power will reduce exposure to global price shocks and deliver more stable, affordable electricity for businesses. Our Clean Power by 2030 mission will bring down bills, reducing exposure to volatile fossil fuel markets.

The Government has taken a number of fair and necessary decisions to fix the public finances, including the changes to employer NICs.

The Government has protected the smallest businesses from the impact of the increase to employer NICs by more than doubling the Employment Allowance from £5,000 to £10,500.

Businesses can also claim employer NICs reliefs for under-21s and under-25 apprentices. That means businesses pay no employer NICs for these groups on earnings up to £50,270. These reliefs were estimated to be worth around £2.5 billion last tax year (2025/26). The government has also committed £2.5 billion over the next three years in the Youth Guarantee and the Growth and Skills Levy, supporting almost one million young people and helping to deliver up to 500,000 opportunities to earn and learn. This includes a Youth Jobs Grant, where employers can claim £3,000 for every eligible 18- to 24-year-old they hire who has been on Universal Credit and looking for work for 6 months; and the Jobs Guarantee Scheme, which will provide every eligible 18- to 24-year-old who has been on Universal Credit and looking for work for 18 months with a guaranteed six-month work placement. This is expected to support over 90,000 subsidised jobs in the next three years.

To support rural pubs, we have also announced that we are more than doubling the Hospitality Support Fund, with £10 million of funding over three years. This fund will aim to help hundreds of rural pubs to diversify their business models, improve efficiency and productivity in the sector; and support people who are furthest from the labour market to move into jobs in hospitality.