UK Grassroots Sector Welcomes Business Rates Cut

The UK government made a U-turn on its plans to raise business rates – the UK equivalent of commercial property taxes – by announcing a cut for pubs and grassroots music venues (which can often be one and the same).

Pubs and grassroots music venues will get a 15% cut to new business rates bills from April 2026, followed by a two-year real-terms freeze, as well as a review of how the government comes up with these rates in the first place.

Music to the ears of grassroots venue operators, who’ve been calling for a tax relief for years now, as it’s one of the most helpful reliefs a small- to no-margin business may receive.

The most recent annual report of the UK’s Music Venue Trust found that more than half (53%) of the UK’s grassroots music venues showed no profit at all in 2025, while, last year alone, 30 grassroots music venues permanently closed.

‘Current Economic Models For Grassroots Live Music Are Not Working’ Finds Music Venue Trust Annual Report

According to the UK government the number of pubs in the UK has fallen by nearly 7,000 since 2010. Just like the grassroots music sector, the pub sector has been raising concerns about the way the government evaluates them for business rates purposes.

Thankfully, the government recognized that “many grassroots live music venues serve as pubs and vice versa, while also playing a vital role restoring pride in local communities.”

Thus, “they will also be included in the support package. This means their new business rates bills will be cut by 15% from April and frozen in real-terms for the following two years.”

From Mark Davyd, CEO and founder of the UK’s Music Venue Trust, commented, “Music Venue Trust warmly welcomes today’s government statement on urgent and immediate Business Rate relief. We want to thank MPs, Mayors, unitary and local authorities, and especially music fans and communities across the country who have spoken up on this issue and ensured that Grassroots Music Venues are included in the immediate relief.

“We will be exploring with our Music Venues Alliance venue members if the proposed 15% reduction in rates payable, followed by a freeze for two years, is sufficient to manage this crisis, which threatened to close hundreds of venues in the next three years.

“There is a commitment to review the calculations at the core of this issue, and we will fully support that review of Rateable Values. Grassroots Music Venues, and other crucial parts of the music ecosystem such as recording studios and rehearsal spaces, require a specific valuation process that recognises their cultural and community value and we hope this review can deliver that.

“Attention now turns to venues in Scotland, Wales, and Northern Ireland, where the same core issue – extreme revaluations of cultural spaces resulting in unaffordable rates demands – need to urgently be addressed.”

Subscribe to Pollstar HERE