If you run a pub in England, your 2026/27 rates bill should already have 15% taken off it, worth an average £1,650 on the government's figures. From April 2027 a further 20% cut is promised on top, about £1,100 for a typical pub. Your bill is your rateable value times a multiplier, then reliefs come off, and most pubs with a rateable value under £51,000 are on the 38.2p small business hospitality multiplier this year. The thing to watch for next April: September's 3.5% inflation sets how much the multipliers rise, and the Budget on 28 October sets the detail of the 20%.
Update 28 October 2026: the Budget took the pubs and live music venues relief from 15% to 35% from April 2027, which the Treasury estimates at more than £3,000 a year for the average pub, and raised full small business rates relief to £18,000 rateable value, tapering to £21,000. Other hospitality bills are capped at inflation for two years. The sums are in the Budget 2026 guide.
I've updated this in October 2026 because three things have moved since July: the inflation figure that drives next year's bill is out, the Budget is a week away, and there are reports of a bigger change for the smallest pubs. Here's the whole thing in one place, with the sum to do on your own bill.
How your bill is worked out
Rateable value, set by the Valuation Office, times the multiplier for your band, gives the starting bill. Then reliefs come off. That's it. The multipliers for 2026/27 in England are:
| Multiplier | Pence per £ of rateable value | Who it's for |
|---|---|---|
| Small business retail, hospitality and leisure | 38.2p | Qualifying RHL properties, rateable value under £51,000 |
| Small business | 43.2p | Other properties under £51,000 |
| Standard retail, hospitality and leisure | 43.0p | Qualifying RHL properties, £51,000 to £499,999 |
| Standard | 48.0p | Other properties, £51,000 to £499,999 |
| High value | 50.8p | £500,000 and over |
A normal pub is a hospitality property, so the RHL rows are the ones that apply, 5p in the pound lower than the matching standard rows. Your council's bill shows which one you've been put on. If it says 43.2p or 48p and you run a pub, ask why.
The reliefs, and where each one stands
| Relief | What it's worth | Status |
|---|---|---|
| Pub relief from April 2026 | 15% off the bill, average saving £1,650 in 2026/27, then a two-year real-terms freeze | In place. Announced 27 January 2026 |
| Extra cut from April 2027 | 20% on top of the existing support, about £1,100 for a typical pub in 2027/28, nearly 32,000 venues | Promised 23 July 2026. Excludes the very largest live music venues. Detail at the Budget |
| Small business rate relief | Nothing to pay at £12,000 rateable value or less if it's your only property, tapering to nothing at £15,000 | In place. Reported that the Budget may lift £12,000 to £18,000 |
The reported small business change is the one worth knowing about if you're a small local. The Morning Advertiser reported on 19 October that the Chancellor is expected to lift the zero-rates line from £12,000 to £18,000, which it says would take about 2,600 pubs out of rates altogether. The Treasury wouldn't comment. Don't plan on it until it's in the Budget.
A worked example
Take a pub with a rateable value of £20,000, too big for small business relief, on the 38.2p multiplier.
| Step | Amount |
|---|---|
| £20,000 × 38.2p | £7,640 |
| Less the 15% pub relief | −£1,146 |
| Bill for the year | £6,494, about £125 a week |
My arithmetic. Your council may apply other reliefs or transitional arrangements as well, so your bill is the final word.
What happens next April
In England, the multipliers go up each April by the previous September's CPI, unless the government sets them lower. September 2026 CPI came out on 21 October at 3.5%. Tax firm Ryan reckons that adds about £1.1bn to bills across England from April 2027, £129m of it on hospitality, leisure and accommodation.
On the example pub, a full 3.5% rise takes the multiplier to about 39.5p and the starting bill from £7,640 to about £7,907, £267 more a year before any relief. Then the reliefs come off. How the 15% and the new 20% combine on the 2027/28 bill is meant to be set out at the Budget, so I'm not going to put a final number on it until it is. What's clear is the order: uprating first, relief after. The day after the Budget I'll update this with the actual figures.
One more thing from this year. The 2026 revaluation raised rateable values in England by 19.4% on average. If yours went up a lot more than that and your trade didn't, that's worth a look.
Check your rateable value
The Valuation Office's find a business rates valuation service shows your rateable value, how it was worked out, and the values of similar properties near you. Pubs are valued on their trade, so if the figure looks wrong, compare it with similar pubs on the same street before you do anything else. If you want to challenge it, that's done through your business rates valuation account, which the same page links to.
What I'd do with the saving
£1,100 a year is £21 a week. At about £2.45 of gross profit on a £5.34 pint, that's nine pints a week. It's welcome. It's also small next to the leaks most pubs have and don't measure.
On a pub doing £4,848 a week in drinks, which is the BBPA's model for a £5,000-a-week community local, 1% of stock lost to waste, over-pouring or drinks nobody rang through is £48 a week. That's more than double the rates cut, every week. So before the saving disappears into general cash flow, I'd spend a bit of it finding out what my real variance is. What's normal is in acceptable stocktake variance, and the free stocktake template costs nothing.
Outside England
Business rates are devolved. Both of the pub reliefs above are England only. Scotland, Wales and Northern Ireland set their own reliefs, so check with your council there.
Common questions
How much business rates relief do pubs get in 2026/27?
Pubs in England get a 15% cut to their 2026/27 business rates bills, which the government says saves the average pub an additional £1,650, followed by a two-year real-terms freeze.
What business rates relief do pubs get from April 2027?
The government has promised a further 20% cut for pubs, clubs and live music venues in England from April 2027, on top of existing support, worth about £1,100 to a typical pub in 2027/28. The very largest live music venues are excluded and the detail is due at the Budget on 28 October 2026.
What multiplier do pubs pay in 2026/27?
Most pubs with a rateable value under £51,000 are on the small business retail, hospitality and leisure multiplier of 38.2p. Between £51,000 and £499,999 it's the standard RHL multiplier of 43p.
Will pub business rates go up in April 2027?
The multipliers rise each April by the previous September's CPI unless the government sets them lower. September 2026 CPI was 3.5%. On a pub with a £20,000 rateable value that adds about £267 a year before reliefs.
Do pubs get small business rate relief?
Yes, if the pub is your only business property and its rateable value is under £15,000. At £12,000 or less there's nothing to pay, tapering to no relief at £15,000. The Budget is reported to be considering lifting £12,000 to £18,000.
Sources
- 15% cut from April 2026, average £1,650 in 2026/27, two-year real-terms freeze, valuation review: GOV.UK, Government announces support package that backs British pubs, 27 January 2026.
- 20% cut from April 2027 on top of existing support, nearly 32,000 venues, typical pub about £1,100, largest live music venues excluded, England: GOV.UK, PM slashes business rates bills for pubs, clubs and live music venues, 23 July 2026.
- 2026/27 multipliers: Reading Borough Council, Changes to business rates multipliers from 2026. Multipliers adjusted to reflect the CPI figure for the September before the billing year: Chorley Council, National non-domestic rating multiplier.
- Small business rate relief, £12,000 and £15,000: GOV.UK, Small business rate relief.
- Reported £18,000 threshold and about 2,600 pubs: Morning Advertiser, Pub operators question reported business rates relief plans, 19 October 2026. September CPI 3.5%, Ryan £1.1bn and £129m, revaluation +19.4%: Morning Advertiser, Hospitality faces £129m business rates rise from April 2027, 21 October 2026. ONS, Consumer price inflation, September 2026.
- BBPA £5,000-a-week community wet-led model, £4,848 drinks sales: BBPA, Running a pub: a guide to costs (PDF), June 2024.
- The £20,000 worked example, the April 2027 uprating example, nine pints and the 1% stock loss figure are my own arithmetic. Not tax advice: your council bill and your accountant are the final word.