Pubs, Clubs and Venues in UK Cities Slammed by Hidden Business Rates Bombshell Says NTIA
Night-time economy businesses across the UK are facing a devastating financial blow from April 2026, as government business rates reforms quietly abolish the 40% Hospitality, Leisure and Night-Time Relief (RHL) and replace it with a system that will force many venues to pay more, not less.
Despite government messaging claiming the new system will deliver “permanently lower rates,” real-world examples tell a very different story: hundreds of pubs, bars, nightclubs, grassroots music venues, and late-night restaurants will see steep increases in their annual bills. This is not reform—it is a stealth tax designed to systematically close down the late-night economy.
Inner-city venues, particularly nightclubs and music venues, will be hit hardest. With the late-night sector already ailing, having contracted by 28% in recent years, these closures will further devastate communities, nightlife culture, and local economies.
Under the current system, venues benefit from 40% relief on their business rates. From April 2026, that relief disappears, replaced by new reduced multipliers. The result is massive, closure-level increases. A small bar with a rateable value of £25,000 currently pays £7,200 per year; under the new system, its bill will rise to £9,550. A mid-sized late-night restaurant or bar (£60,000) will see its bill jump from £17,280 to £25,800. Grassroots music venues or nightclubs (£100,000) will face bills rising from £28,800 to £43,000. Large city-centre nightclubs (£300,000) will see £86,400 leap to £129,000, while flagship venues (£650,000) will experience an eye-watering increase from £187,200 to £330,200.
“These aren’t marginal increases—they’re closure-level numbers,” said Michael Kill, CEO of the Night-Time Industries Association (NTIA). “This reform has been presented as a permanent tax cut, but for most night-time venues it is the exact opposite. The removal of 40% relief wipes out any benefit from reduced multipliers and leaves businesses worse off overnight. Inner-city nightclubs, music venues, and grassroots venues are on the frontline of this attack. With the late-night sector already contracting by 28%, the government is systematically shutting down the late-night economy. This is a hidden tax rise on jobs, culture, and city centre life.”
The night-time economy employs over a million people nationwide and contributes billions to the UK economy, yet these reforms risk dismantling and chance of recovery following the pandemic, the energy crisis, and the cost-of-living squeeze. While the government has announced £4.3bn in transitional support over three years—including £3.2bn Transitional Relief, £1.3bn Expanded Supporting Small Business Scheme, and a three-year extension on Small Business Rates Relief—Kill warns this merely delays the impact rather than preventing it. “Transitional relief softens the landing—it doesn’t change where we land. And where many venues will land is closure,” he said.
Night-time economy operators are now calling on the government to extend or replace the 40% RHL relief beyond 2026 for night-time venues, introduce a specific multiplier to reflect the unique costs of operating after 9pm, protect grassroots music venues from punitive rate hikes, and carry out a full impact assessment before implementing this reform.