Businesses
England’s Hospitality Businesses Could Reinvest £47.2M After Business Rates Cut, New Research Finds
26 Aug 2026
New research from money.co.uk suggests pubs, live music venues and social clubs across England could use business rates savings to support investment, strengthen cash flow and increase borrowing for growth.
13 August 2026 — Hospitality businesses across England could reinvest an estimated £47.2 million following the government’s new business rates discount, according to research from money.co.uk business loans.
The study combined Valuation Office Agency data with a survey of 500 hospitality business owners.
It found that qualifying live music venues could save a median of £2,502 a year, while pubs could save £1,795 and social clubs £936.
The research also suggests that many businesses plan to use the savings actively rather than simply absorb them.
57% Plan to Reinvest the Savings
According to the survey, 57% of hospitality business owners plan to reinvest the money back into their businesses.
The most common areas for investment include:
- business expansion;
- new equipment;
- marketing;
- staffing;
- and improvements to premises.
A further 31% said they would keep the money as a cash buffer, while 22% plan to use it to reduce existing debt.
Pubs Could Save Nearly £1,800 a Year
Pubs represent the largest qualifying group.
There are around 39,500 pubs in England, according to the research.
The median rateable value is £23,500. After applying the relevant multiplier and the 20% discount, the median pub is expected to save around £1,795 annually.
For many operators, that could help offset rising costs across energy, wages, stock and maintenance.
Live Music Venues Stand to Save More
Live music venues that qualify for the relief could save even more.
The median annual saving is estimated at £2,502.
For smaller venues, that amount could help support equipment upgrades, sound systems, refurbishment or staffing.
The research suggests these savings could be especially important for businesses operating on narrow margins.
Business Rates Cut Could Boost Borrowing Confidence
The study also looked at whether the relief could influence access to finance.
Around 43% of hospitality business owners said the rates cut would make them more likely to borrow money to grow.
That includes:
11% who said they would definitely be more likely to borrow;
32% who said they would possibly be more likely to borrow.
Another 11% said they would specifically use the rates savings as a deposit or contribution toward a business loan.
This suggests the relief could have a multiplier effect by helping businesses unlock larger investments.
Finance Remains a Major Barrier to Growth
Despite that appetite, access to finance remains difficult for many hospitality businesses.
The research found that 51% of owners had missed growth opportunities because they could not access finance or did not feel confident borrowing.
The biggest concern was taking on debt.
Weak cash flow and uncertainty over repayments were also major barriers.
Credit checks were another factor affecting borrowing confidence.
Cost Relief Could Support Wider Investment
Tom Luth, CEO of money.co.uk, said the business rates relief could give operators greater flexibility.
For pubs, social clubs and live music venues, this business rates relief represents a welcome opportunity to ease cost pressures.
He added that the savings could support investment in premises, teams and cash flow.
The research also suggests that businesses may use the relief to strengthen their balance sheets before taking on new finance.
Five Ways Businesses Could Use the Savings
money.co.uk business loans expert Matt Browning identified several possible uses for the relief.
These include strengthening cash reserves, investing in refurbishment, upgrading equipment, hiring more staff and increasing marketing activity.
For larger projects, businesses may also use the rates savings to support repayments on external finance.
Why This Matters for England’s Hospitality Sector
Hospitality has faced persistent pressure from energy costs, wages, rent and weaker consumer spending.
Business rates relief will not remove those challenges.
However, even relatively modest annual savings can improve cash flow for smaller operators.
That could be enough to help businesses invest earlier, avoid delaying upgrades or pursue opportunities they previously considered too risky.
About the Research
The analysis used rateable value data from the Valuation Office Agency Rating List for England.
Savings were calculated using the relevant business rates multiplier and a 20% discount.
The survey of 500 hospitality business owners was conducted by OnePoll in August 2026.
Respondents included pubs, bars, social clubs and live music venues.
Source
- money.co.uk business loans — Hospitality Business Rates Research, August 2026: https://www.money.co.uk/business/business-loans
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Sara Srifi
Sara is a Software Engineering and Business student with a passion for astronomy, cultural studies, and human-centered storytelling. She explores the quiet intersections between science, identity, and imagination, reflecting on how space, art, and society shape the way we understand ourselves and the world around us. Her writing draws on curiosity and lived experience to bridge disciplines and spark dialogue across cultures.
