The reduction will take effect from April 2027 and will save the typical pub an estimated £1,100 next year, according to the government.
Designed to cut costs for working people and communities, the move will benefit nearly 32,000 pubs, clubs and live music venues, the government said.
The changes will be fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.
Mr Burnham said: ‘For too long, governments have stood by while cherished venues have disappeared from our local high streets.
‘This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing . . . is just the start as we work to bring back hope across the country.’
Responding to the announcement, the Federation of Small Businesses (FSB) said: ‘We are encouraged at the signal from the Prime Minister . . . , instructing his government to plan for a significant increase in Small Business Rate Relief at the heart of the next Budget.’
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05/08/2026
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