Rates relief for retailers urged after pubs handed extra tax cut

The British Independent Retailers Association (Bira) has called on the Government to extend business rates relief to the wider high street after announcing a further reduction for pubs, clubs and live music venues.

New Prime Minister Andy Burnham today (July 23) confirmed that eligible hospitality and live entertainment venues in England will receive a 20% reduction in their business rates bills from April 2027. The measure comes on top of the existing 15% relief and is expected to benefit almost 32,000 venues.

The Government says the move could save a typical pub around £1,100 a year and will be funded through a review of reliefs available to other businesses, including vape shops.

However, Bira argues the latest announcement leaves independent retailers facing rising costs without equivalent support.

Andrew Goodacre, CEO of Bira (pictured), says: “Once again pubs, clubs and music venues are being given special treatment on business rates. This follows the discount they were given after last year’s disastrous changes to the system.

“My question is straightforward. What about the rest of the high street, when other businesses have seen a 15% increase this year and their business rates bill more than double since 2024?

“If the Prime Minister is serious about revitalising high streets, he cannot only support pubs in this way. Seventeen thousand shops closed in 2025, plus many thousands of jobs lost, and that number will keep rising if these businesses continue to be overlooked.”

Business rates have become an increasing concern for independent retailers, with trade bodies warning that higher occupancy costs are adding to pressures from rising wages, National Insurance contributions and weaker consumer spending.

Bira, which represents more than 6,000 independent retailers across the UK, has repeatedly called for a more fundamental overhaul of the business rates system, arguing that support should be available across the high street rather than targeted at individual sectors.

The latest announcement forms part of a series of economic measures unveiled by the Government this week, including a £2 cap on most bus fares in England from January and a reduction in VAT on household electricity bills from October.

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