Pub business rates 2027: the new 35% relief, worked out
Pub business rates for 2027/28 in England: who gets 35% relief, which multiplier applies, how many pubs pay £0, plus a calculator and checklist.
By the TablePort teamFacts checked 12 min read
The rates bill lands every March, and this year you have read that pubs get "35% off". Whether that is worth nothing or thousands of pounds to your pub depends on one figure printed on the bill: your rateable value.
From 1 April 2027, an eligible pub in England gets 35% off its business rates bill, up from 15%, for 2027/28 and 2028/29. For a pub with a £30,000 rateable value on the 39.5p small business multiplier, that is £11,850 before relief, £10,072.50 with the old 15% and £7,702.50 with 35%: £2,370 a year less, or £197.50 a month.
We counted the 36,417 pubs on England's 2026 rating list. For the 39% valued at £18,000 or less, the 35% changes nothing if the pub is its occupier's only property, because small business rate relief already takes the bill to £0. The relief does its work for the 56% valued at £21,000 or more. This guide covers who qualifies, which band you are in, a calculator table and a checklist for when the bill arrives.
Last checked: 4 November 2026.
What changes for pubs on 1 April 2027?
All of this comes from Business Rates Information Letter 8/2026 (MHCLG, dated 28 October and updated 30 October 2026). It applies in England only.
- Pubs and live music venues relief rises to 35%. The letter gives "an extra 20% relief for pubs, social clubs and all but the largest live music venues", on top of the 15% introduced in 2026, for 2027/28 and 2028/29. Live music venues with a rateable value of £1 million or more stay at 15%.
- Lower multipliers for hospitality. Retail, hospitality and leisure (RHL) properties get multipliers 5.2p below the ordinary ones: 39.5p (small business RHL) and 44.5p (standard RHL).
- Bigger small business rate relief. For RHL properties, full relief up to £18,000 rateable value (was £12,000), tapering evenly to nothing at £21,000 (was £15,000), until 31 March 2029.
- A cap on bill increases. Eligible RHL bills cannot rise by more than CPI inflation in 2027/28 and 2028/29. The cap does not cover rises caused by improvements or by losing a relief, and empty properties do not qualify.
- A 1p transitional relief supplement continues for both years to help pay for the package.
Guidance for the 2027/28 pub relief has not been published yet, so the eligibility rules below come from the current 2026/27 scheme.
Does my pub qualify for the 35% relief?
The current pubs and live music venues relief guidance for councils (2026/27) covers occupied property used "wholly or mainly" as a pub or live music venue. A pub, for this relief, is a venue that:
- is open to the general public;
- allows free entry, apart from occasional entertainment;
- allows drinking without requiring food to be consumed; and
- lets customers buy drinks at a bar.
The guidance excludes restaurants, cafés, nightclubs, snack bars, hotels, guesthouses, sporting venues, theatres, cinemas and casinos. Working men's clubs are given as an example of a venue that may be treated as a pub. There is no rateable value limit for pubs.
Gastropubs are where owners get caught. Tests 3 and 4 usually decide it: if a guest can walk in, stand at the bar and order a pint without eating, you may well count as a pub, even if food brings in most of your takings. If every table needs a food order and the bar is a service bar, the council may treat you as a restaurant. The council decides unclear cases, so keep evidence such as photos of the bar and your drinks-only policy. Your premises licence is evidence too: a condition that alcohol is sold only with a table meal points towards a restaurant. Our liquor licence guide explains licence conditions.
Social clubs are named in the Budget letter but not defined in the current guidance. Expect the 2027/28 guidance to settle it.
Which multiplier applies to my pub?
The multiplier is the pence you pay per pound of rateable value, before reliefs. These are the 2027/28 figures from paragraph 7 of letter 8/2026:
| Multiplier | 2027/28 | Who pays it (based on 2026/27 rules) |
|---|---|---|
| Small business RHL | 39.5p | RHL property, rateable value under £51,000 |
| Standard RHL | 44.5p | RHL property, £51,000 to under £500,000 |
| Small business (non-RHL) | 44.7p | Other property under £51,000 |
| Standard (non-RHL) | 49.7p | Other property, £51,000 to under £500,000 |
| High-value | 52.5p | Property with a rateable value of £500,000 or more |
The £51,000 and £500,000 limits are the 2026/27 ones on gov.uk's business rates calculator page, which lists pubs among the businesses that usually get the RHL multipliers. Letter 8/2026 does not mention changing the limits, but check your 2027/28 bill shows the right multiplier.
For comparison, the 2026/27 RHL multipliers on the same gov.uk page are 38.2p (small business) and 43p (standard).
How many pubs does the 35% relief actually help?
Fewer than the headline suggests, because a pub's rateable value decides which relief does the work. Find your rateable value on gov.uk's Find a business rates valuation, then find your row.
Pubs in England by rateable value, and what decides the 2027/28 bill (one property only):
| Rateable value (2026 list) | Pubs | Share | What decides your 2027/28 bill |
|---|---|---|---|
| £12,000 or less | 9,302 | 25.5% | Full small business rate relief: £0, as in 2026/27 |
| £12,001 to £18,000 | 5,007 | 13.7% | Full small business rate relief from April 2027: £0 |
| £18,001 to £20,999 | 1,736 | 4.8% | Tapered small business rate relief, then 35% pub relief |
| £21,000 to £50,999 | 10,465 | 28.7% | 39.5p multiplier, 35% pub relief, CPI cap |
| £51,000 to £499,999 | 9,839 | 27.0% | 44.5p multiplier, 35% pub relief, CPI cap |
| £500,000 or more | 68 | 0.2% | 52.5p high-value multiplier, 35% pub relief |
| All pubs | 36,417 | 100% |
Source: our analysis of the Valuation Office Agency's 2026 rating list download (compiled list, version dated October 2026). We counted list entries in English billing authorities in the Valuation Office's two pub categories, special category codes 226 and 227 ("Public Houses/Pub Restaurants"), by rateable value.
Two cautions on reading it. A list entry is a property, not a business: an owner with several sites may get no small business rate relief, so the £0 rows show where full relief can apply, not who will receive it. And empty pubs are on the list too, though they cannot get pub relief.
What the table tells you. About 5,000 pubs valued between £12,001 and £18,000 move into full small business rate relief from April 2027, so for a single-site tenant or freeholder there, the higher threshold matters more than the 35%. The pub relief earns its headline in the top half: the 20,372 pubs valued at £21,000 or more. At £21,000 the extra 20 points are worth £1,659 a year, and the saving grows with the bill.
Worked example: a pub with a £30,000 rateable value
A single-site freehouse in England, rateable value £30,000, no other properties.
| Step | Calculation | Result |
|---|---|---|
| Multiplier | Small business RHL (under £51,000) | 39.5p |
| Gross bill | £30,000 × 0.395 | £11,850.00 |
| Small business rate relief | Rateable value above £21,000 | None |
| With 15% pub relief (old) | £11,850 × 0.85 | £10,072.50 |
| With 35% pub relief (new) | £11,850 × 0.65 | £7,702.50 |
| Saving from the change | £10,072.50 − £7,702.50 | £2,370 a year |
| Per month | £2,370 ÷ 12 | £197.50 |
On the same rateable value in 2026/27, the bill would have been £30,000 × 38.2p = £11,460, less 15% = £9,741. So the 2027/28 bill is £2,038.50 lower year on year, even though the multiplier went up.
The example simplifies on purpose. It leaves out transitional relief from the 2026 revaluation, the CPI cap, the 1p supplement and any other relief your council applies. Under the 2026/27 guidance, pub relief is worked out on the bill after improvement relief, transitional relief, other mandatory reliefs (such as small business rate relief) and certain discretionary reliefs, so it comes near the end of the sequence. Your real bill comes from the council.
Pub business rates calculator: 2027/28 at a glance
The same method across common rateable values. Small business rate relief is applied before pub relief, following the order in the 2026/27 guidance. One property only, no transitional relief or CPI cap.
| Rateable value | Multiplier | Gross bill | After small business relief | Bill at 15% | Bill at 35% | Saving |
|---|---|---|---|---|---|---|
| £10,000 | 39.5p | £3,950 | £0 (full relief) | £0 | £0 | £0 |
| £18,000 | 39.5p | £7,110 | £0 (full relief) | £0 | £0 | £0 |
| £20,000 | 39.5p | £7,900 | £5,266.67 (33.3% relief) | £4,476.67 | £3,423.33 | £1,053 |
| £30,000 | 39.5p | £11,850 | £11,850 | £10,072.50 | £7,702.50 | £2,370 |
| £45,000 | 39.5p | £17,775 | £17,775 | £15,108.75 | £11,553.75 | £3,555 |
| £60,000 | 44.5p | £26,700 | £26,700 | £22,695 | £17,355 | £5,340 |
| £100,000 | 44.5p | £44,500 | £44,500 | £37,825 | £28,925 | £8,900 |
To work out your own, copy this into a spreadsheet or your notes:
PUB RATES 2027/28 (ENGLAND), ONE PROPERTY
Rateable value (RV) = £______
Multiplier = 0.395 if RV under £51,000
0.445 if RV £51,000 to £499,999
0.525 if RV £500,000 or more
Gross bill = RV × multiplier
Small business relief (SBR):
RV £18,000 or less = 100%
RV £18,001 to £20,999 = (21,000 − RV) ÷ 3,000
RV £21,000 or more = 0%
Bill before pub relief = gross bill × (1 − SBR)
Bill with 35% pub relief = bill before pub relief × 0.65
Monthly figure (12 months) = bill with pub relief ÷ 12
Business Rates Information Letter 8/2026 says relief on the new £18,000 to £21,000 band "tapers evenly", as it does on today's £12,000 to £15,000 band: gov.uk's small business rate relief page gives 50% relief at £13,500, halfway along the band. On the new band, £19,500 gets 50% and £20,000 gets a third.
If you have a second property, small business rate relief has an aggregate rateable value limit of £29,999 across England from April 2027, according to the letter.
Check the figures with your council or a rating surveyor for your situation.
How the CPI cap and transitional relief fit in
The 2026 revaluation hit pubs harder than almost any other trade, which is why the cap may matter to you as much as the 35%. The Valuation Office's 2026 revaluation statistics (1 April 2026) show for England:
| Category | Change in total rateable value at the 2026 revaluation | Median rateable value, 2023 list to 2026 list |
|---|---|---|
| Public houses/pub restaurants | +30.3% | £17,000 to £24,500 |
| Restaurants | +13.8% | £21,800 to £24,800 |
| Cafés | +14.5% | £10,000 to £11,500 |
| All property | +19.6% | £8,300 to £9,800 |
The same tables show about 2,500 more pubs valued at £51,000 or more on the 2026 list than on the 2023 list, which moved them onto the higher standard multiplier.
Transitional relief phases in those rises. The CPI cap sits on top: an eligible RHL property's bill cannot rise by more than inflation in 2027/28 or 2028/29, tested on the position each 1 April. If your bill before the cap would jump sharply, the cap may do more for you than the extra 20 points of pub relief. If your bill was already falling, the cap does nothing and the relief does the work. Your bill should show each line separately. If it shows one total, ask the council for the breakdown.
Checklist: when the 2027/28 bill arrives
PUB RATES CHECKLIST (ENGLAND, 2027/28)
[ ] Find your rateable value on gov.uk (Find a business rates valuation)
[ ] Find your row in the band table: which relief decides your bill?
[ ] Check the multiplier on the bill: 39.5p under £51,000, 44.5p above
[ ] RV £18,000 or less and your only property? The bill should be £0
[ ] RV £18,001 to £20,999? Check tapered small business relief
[ ] Check pubs and live music venues relief shows at 35%, not 15%
[ ] Check transitional relief and the CPI cap lines
[ ] If relief is missing, email the council's business rates team
with your account number and a photo of the bar
[ ] Spread the bill over 12 monthly instalments if cash is tight
(ask the council)
[ ] Put the monthly figure into your budget next to wages and rent
We could not confirm whether every council applies pub relief automatically, so do not assume it: check the line on the bill.
Once you have the monthly figure, set it against what the pub takes. Our UK restaurant profit margin guide shows where rates sit in a P&L, and the pub EPOS guide covers tracking wet GP on the till.
Scotland, Wales and Northern Ireland run their own rates systems. None of the figures above apply there.
Can TablePort handle this for you?
TablePort does not calculate rates, but it shows the numbers you need to absorb the new bill:
- Daily report. Each day's sales arrive with an AI-written summary and margin recommendations, so you can set your own monthly rates figure against what the pub takes.
- Labour cost against revenue. Staff Management tracks hours and labour cost against sales, so a saving on rates is not quietly spent on extra quiet-night shifts.
- One system for bar and food. Bar tabs, table service and kitchen tickets run on one POS, so drink and food sales land in the same daily report.
The limit: your rates bill, reliefs and appeals stay with your council. See restaurant management.
Frequently asked questions
- Does my pub get 35% off from April 2027 or only 15%?
If it is an eligible pub in England, 35% from 1 April 2027 for 2027/28 and 2028/29. The relief was 15% in 2026/27. Live music venues with a rateable value of £1 million or more stay at 15%.
- How many pubs will pay no business rates from April 2027?
Our count of the Valuation Office's 2026 rating list finds 14,309 pubs in England, 39% of the total, valued at £18,000 or less. Each can pay £0 under small business rate relief if it is the occupier's only property. About 5,000 of them, valued between £12,001 and £18,000, reach £0 because of the higher threshold.
- Is a gastropub a pub for business rates relief?
It can be. Under the current guidance a pub must allow drinking without requiring food to be consumed and let customers buy drinks at a bar. A food-led pub where anyone can order a drink at the bar likely qualifies. A restaurant with a service bar likely does not. The council decides.
- Which multiplier applies to a pub with a £30,000 rateable value?
The small business retail, hospitality and leisure multiplier of 39.5p for 2027/28, giving a gross bill of £11,850 before reliefs. With 35% pub relief and no other reliefs, the bill is £7,702.50.
- Will the 35% come off my bill automatically?
Councils grant the relief and are reimbursed by central government. We could not confirm that every council applies it without a request, so check the relief line on your 2027/28 bill and contact the council if it is missing.
- Do restaurants get the pub business rates relief?
No. The current guidance excludes restaurants and cafés. Restaurants in England get the lower RHL multipliers, the CPI cap and, below £21,000 rateable value, small business rate relief. Our Budget 2026 guide has the restaurant figures.
- How long does the 35% pub relief last?
For 2027/28 and 2028/29, so until 31 March 2029. The RHL small business relief thresholds and the CPI cap run for the same two years.
