The UK Government has announced a targeted support package for pubs and music venues to mitigate the impact of rising business rates. From April 2026, eligible venues across England, including the vital hospitality hubs of Yorkshire, the North East, and the North West, will receive a 15% discount on their business rates bills, followed by a two-year real-terms freeze.

The Treasury estimates the measure will save the average pub approximately £1,650 in the 2026/27 financial year. While the move is intended to provide "breathing space" for a sector hit by rising energy and labour costs, major business groups warn that the measures do not address a "broken" tax system.

Business Leaders Call for Deeper Reform

Louise Hellem, Chief Economist at the CBI, welcomed the targeted support but cautioned against further complexity.

“Targeted support for pubs will be welcomed by those businesses, but it does not address the fundamental problem that our whole business rates system is broken. What we need is genuine reform, not another layer of complexity.”

Hellem noted that the UK’s business tax burden is already at a 25-year high—the highest property tax in the OECD—warning that stalled investment and plateauing job creation are direct consequences of the rising burden.

The British Chambers of Commerce (BCC) echoed these concerns, noting that hospitality venues are particularly anxious. Kate Shoesmith, Director of Policy at the BCC, said: “Our latest research shows that concern about business rates is its highest for at least eight years, with a third of all firms worried. In the hospitality sector that rises to 49%.”

The BCC is urging the government to move toward annual revaluations and a single flat-rate 40p multiplier to ensure transparency and fairness.

Impact on the North of England

For the North’s hospitality industry—a cornerstone of regional tourism and community life—the relief is a significant but temporary reprieve. Regional stakeholders have long argued that the current valuation system, based on "turnover potential" rather than floor space, unfairly penalises successful local venues.

The Institute of Directors (IoD) suggested that earlier policy intervention would have better supported business confidence. Anna Leach, Chief Economist at the IoD, stated: “The Institute of Directors welcomes today’s decision... However, stronger policy design at an earlier stage would deliver greater benefits for business confidence, planning and costs.”

While the Chancellor, Rachel Reeves, has framed the package as a way to "restore pride" in local communities, the consensus from the North’s business community remains clear: temporary reliefs are no substitute for the fundamental reform promised in the 2024 Manifesto.