Government cuts business rates for 32,000 pubs and venues but excludes large music spaces
Hackney councillor calls the 20% reduction a welcome first step but warns it fails to address wider pressures
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Nearly 32,000 pubs, clubs and live music venues across England will receive a 20% reduction in business rates, the government announced this week. The measure, described as a first step by ministers, will not take effect until next year and excludes larger music venues, with further details expected in the Budget.
Cllr Sam Mathys, Hackney Council’s Cabinet Member for Culture, Nightlife, Resilience and Business Standards, said the cut was welcome but insufficient. Mathys, who led the London Nightlife Taskforce report, warned that business rates are only one of many financial pressures facing venues.
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Venues face wider financial pressures
Mathys said venues close for reasons beyond business rates, including rising VAT bills, sudden increases in insurance premiums, and outdated licensing conditions. Security costs can double after an incident, and freehold sales to new owners who have never visited the venue often lead to closures.
The London Nightlife Taskforce report, which Mathys led, contains 20 recommendations across 10 areas. Governments typically implement one recommendation per year, often prioritising those with strong visual appeal, Mathys said, as reported by Hackney Council.
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Large venues excluded, funding source questioned
The government’s announcement excludes large music venues from the discount, with no clarity on where the threshold will be set. Mathys said these venues are vital, as they support smaller spaces by attracting audiences and breaking new acts.
The funding for the rates cut comes from a review of reliefs for businesses judged not to contribute positively to communities, including vape shops. Mathys said this approach reflects a pattern of funding culture by penalising other sectors rather than treating it as a priority in its own right.
I’ve watched too many of these announcements land as the whole story when they were always meant to be the opening line.
Cllr Sam Mathys, Hackney Council Cabinet Member for Culture, Nightlife, Resilience and Business Standards
What happens next
The 20% business rates cut will apply from next year. The government has not specified when the Budget will confirm the threshold for large venues or the outcome of the review of reliefs for vape shops and similar businesses. Mathys said the cut should be the start of broader reforms to support nightlife.
Questions this report answers
+How many venues will benefit from the business rates cut?
Nearly 32,000 pubs, clubs and live music venues across England will receive a 20% reduction in business rates. The government said the savings will take effect next year, not immediately.
+Why are large music venues excluded from the discount?
The government’s announcement excludes large music venues but has not defined the threshold. Details are expected in the upcoming Budget. Cllr Sam Mathys said these venues are crucial for supporting smaller spaces.
+What other costs are forcing venues to close?
Venues close due to rising VAT bills, insurance premiums, security costs and outdated licensing conditions, Cllr Sam Mathys said. Freehold sales to new owners who do not engage with the venue also contribute to closures.
+How is the business rates cut being funded?
The funding comes from a review of business rate reliefs for vape shops and other businesses deemed less beneficial to communities. The government has not confirmed when the review will conclude.
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