The UK government has unveiled a new support package for pubs and live music venues in England following a sharp backlash over business rates changes. The package is expected to be worth more than £80 million per year for three years. The move comes after trade bodies warned that changes introduced in the chancellor’s November budget would lead to closures and job losses across the hospitality sector, particularly affecting pubs. Officials admitted they had underestimated the financial impact of the new rates. The support applies only to England, but the government confirmed that additional funding would be made available for Scotland and Wales in due course. While the sector cautiously welcomed the package, several trade groups criticized the plan for not going far enough. They also expressed concern that hotels, retailers, and other businesses under financial pressure were left out. A group of publicans who have barred Labour MPs, including Chancellor Rachel Reeves, from their premises said that rate relief alone would not convince them to serve the chancellor a pint. Exchequer Secretary Dan Tomlinson said the support would give pubs in England an average saving of £1,650 each. The government will provide a 15% discount on new business rates bills starting 1 April, with bills frozen in real terms for two additional years. Three-quarters of pubs are expected to see their rates fall or remain the same next year. By 2028-29, rates across the sector are projected to be lower than current levels. The relief is limited to pubs where drinks can be purchased without food. Hotels, which face rising rates, will be reviewed separately. Local authorities will decide on borderline cases, such as establishments that could be considered hotels or restaurants. During the three-year relief period, the government plans to review the method used to calculate pub rates, following industry claims that the system unfairly penalizes them. In addition to financial relief, the government has announced measures to make pub operations easier. These include extending opening hours during the latter stages of this year’s men’s football World Cup and simplifying procedures for expanding premises. However, the government will not reduce VAT on alcohol, one of the sector’s biggest complaints. Emma McClarkin, chief executive of the British Beer and Pub Association, said the 15% rate relief would provide “certainty for tens of thousands of pubs” and bring a sigh of relief for landlords. She called for a long-term plan for permanent business rates reform and reduced regulation. Several trade bodies and pub associations criticized the plan for not addressing wider cost pressures, including rising wages, energy bills, and VAT. The Campaign for Real Ale (Camra) described the relief as “shortsighted” and warned that temporary measures may not save pubs facing closure. Landlord Andy Lennox, who leads a group banning Labour MPs from pubs, said rates reform addressed only part of their demands and emphasized solidarity with the broader hospitality sector. The hospitality industry has faced mounting financial pressure in recent years, including higher national insurance contributions, minimum wage increases, energy costs, and inflation. Last year, analysis showed that one pub a day closed permanently in England and Wales. The total number of pubs, including vacant and available properties, dropped to 38,623 in 2025 from 39,989 in 2024. Reeves’s November budget included a £4.3 billion support package for businesses to offset the end of a Covid-era relief scheme, which had cut bills by 40%. However, the first post-pandemic property revaluations from April caused a significant rise in business rates. Before Tuesday’s announcement, pubs faced an average 76% increase in rates over three years, while hotels were expecting a 115% rise. Despite criticism from the hospitality sector, some business leaders, including Waterstones’ James Daunt, defended the government’s approach, calling the changes “sensible” and beneficial for shops in struggling areas.