Live music venues, pubs and social clubs in England will have their business rates bills cut by 20% from April 2027.
The measure is among the first acts of Andy Burnham‘s government, days after he became UK Prime Minister on Monday (July 20), succeeding Keir Starmer.
The cut will apply to nearly 32,000 businesses, with the typical pub estimated to save £1,100 (around USD $1,475) in the next financial year, the government said on Thursday (July 23).
The 20% discount will be applied on top of an existing 15% relief for pubs and live music venues, taking the combined reduction to around 32%, by MBW’s calculation.
That earlier 15% relief was announced in January, with bills also frozen in real terms for a further two years.
The new cut will not be available to the “very largest” live music venues, the government said, with full eligibility details to be set out at the Budget.
The package is worth around £100 million ($134m) a year, funded partly by reviewing rate reliefs for businesses that “do not make a positive contribution to local communities, such as vape shops,” alongside a crackdown on online marketplace sellers that avoid tax.
“I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do.”
Andy Burnham, UK Prime Minister
“For too long, governments have stood by while cherished venues have disappeared from our local high streets,” said Prime Minister Andy Burnham.
“I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do,” Burnham added.
Chancellor John Healey said pubs, clubs and live music venues “are at the heart of communities across the UK.”
“They bring people together, support local jobs and help keep high streets and town centres busy – which is why we will back them all the way,” said Healey.
“They bring people together, support local jobs and help keep high streets and town centres busy – which is why we will back them all the way.”
John Healey, UK Chancellor
UK Music CEO Tom Kiehl said the cut offered “much needed support for live music venues.”
“We have lost too many venues to soaring business rates and these cuts offer a crucial lifeline to those still struggling to make ends meet,” said Kiehl, who also urged the government to extend the relief to recording studios.
“We have lost too many venues to soaring business rates and these cuts offer a crucial lifeline to those still struggling to make ends meet.”
Tom Kiehl, UK Music
Michael Forster, CEO of music marketplace GigPig, called the move “a hugely positive step.”
“At GigPig, we’ve long championed what we call seed music venues: the pubs, bars, restaurants and hotels where many musicians earn their first paid gigs, build confidence and take the first steps in their careers before progressing to grassroots venues and beyond,” said Forster.
“If we’re serious about protecting Britain‘s position as one of the world’s leading music nations, we need to support the entire live music ecosystem, from the very first paid performance through to our most iconic stages.”
“If we’re serious about protecting Britain‘s position as one of the world’s leading music nations, we need to support the entire live music ecosystem, from the very first paid performance through to our most iconic stages.”
Michael Forster, GigPig
“We hope that, as a champion of British music, Andy Burnham will continue to recognise the vital role played by seed and grassroots music venues, and the wider hospitality sector that helps develop the next generation of British talent,” said Forster.
The Music Venue Trust (MVT), which represents grassroots venues, welcomed the “recognition that grassroots music venues are essential to our local communities.”
“The 20% additional reduction on Business Rates from April 2027 is an encouraging first step in a range of opportunities available to Andy Burnham‘s new team to not just protect and secure live music, but begin to restore its central role at the heart of our towns and cities.”
Mark Davyd, Music Venue Trust
“The 20% additional reduction on Business Rates from April 2027 is an encouraging first step in a range of opportunities available to Andy Burnham‘s new team to not just protect and secure live music, but begin to restore its central role at the heart of our towns and cities,” said MVT CEO Mark Davyd.
Davyd called on the governments of Wales, Scotland and Northern Ireland to match the support through “Barnett formula consequentials,” and urged ministers to widen the criteria “so that all live music spaces of all sizes qualify.”
Michael Kill, CEO of the Night Time Industries Association, said the move “demonstrates a broader recognition of the vital economic, cultural and social contribution made by the night-time economy.”
Kill added that the tax break could provide “meaningful relief to businesses facing sustained cost pressures.”
Grassroots venues have been closing across the UK even as the wider live sector has grown, with consumer spend on UK live music rising 9.5% year-over-year in 2024 to £6.68 billion ($7.23bn), as previously reported by MBW.
Manchester, where Burnham served as mayor before returning to Parliament, is the UK’s second-largest live music market after London, accounting for 8.1% of live music spend that year.
The rates cut adds to a series of measures introduced over the past year, including Turn It Up: Our Plan for Music, unveiled on July 13 under the previous government.
Those measures also include a ban on ticket resale above face value and a £1 voluntary contribution on arena and stadium tickets that funds the LIVE Trust.
As Greater Manchester mayor, Burnham championed the Beyond The Music conference and publicly backed the £1 grassroots ticket levy.
“What we’re announcing today is just the start as we work to bring back hope across the country,” said Burnham.Music Business Worldwide
