Pubs, live music venues and social clubs across England could benefit significantly from the government’s new business rates discount, according to new research from money.co.uk business loans. The study combined Valuation Office Agency data with a survey of 500 hospitality business owners to look at how much businesses could save — and what they plan to do with the money.
1. Live music venues could save more than £2,500 a year
Qualifying live music venues and nightclubs are expected to save a median of £2,502 a year on their business rates bills.
Pubs, meanwhile, could save a median of £1,795 a year, while social clubs could see an average median saving of £936.
2. Most hospitality businesses plan to reinvest the money
The research found that 57% of hospitality business owners plan to reinvest their savings directly back into their businesses.
Popular choices include expanding, buying new equipment and increasing spending on marketing. Another 31% said they would keep the money as a cash buffer, while 22% plan to use it to reduce existing debt.
3. The rates cut could encourage businesses to borrow and grow
Around 43% of hospitality business owners said the business rates reduction would make them more likely to consider borrowing money to fund growth.
Eleven per cent said they would specifically use their rates saving as a deposit towards a business loan, potentially allowing them to make a larger investment than the relief alone would fund.
4. Access to finance is still stopping businesses from expanding
More than half of those surveyed — 51% — said they had previously missed a growth opportunity because they could not access finance or did not feel confident borrowing.
Concerns about taking on debt were the biggest barrier, followed by uncertain cash flow and worries about being approved following credit checks.
5. Businesses could use the saving for staff, refurbishment and marketing
money.co.uk business loans expert Matt Browning suggests hospitality businesses could use the relief to strengthen cash reserves, refurbish premises, upgrade equipment, take on additional staff or invest more in marketing.
For pubs and live music venues facing higher operating costs, even a relatively modest annual saving could potentially help fund improvements that attract more customers or reduce running costs.
The research was based on Valuation Office Agency data and a OnePoll survey of 500 hospitality business owners in England, conducted in August 2026.
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