How much tax does the UK government raise from business rates?published at 12:24 GMT
Ben Chu
BBC Verify policy and analysis correspondent
The UK government is expected to announce later that it will provide additional relief for pubs affected by the forthcoming changes in business rates.
It announced a reform of the system in the November 2025 Budget, external, which it said would permanently reduce the business rates due from small retail, hospitality and leisure firms in England relative to other types of businesses.
However, in April all firms in the UK face a revaluation of their properties for the purpose of levying business rates, which happens every three years.
The temporary Covid-era business rates relief system for pubs is also being fully withdrawn in 2026-27.
The combination of these changes has left some - though not all - pubs facing a sizable increase in their business rates bill from April.
Image source, EPAPubs are expected to get additional help with business rates from the government
In the Budget, external, the government put a support package in place which it says will mean most firms’ bills will rise by no more than 15% this year, at a cost to the taxpayer of £4.3bn over the next three years.
The government is expected to increase the size of this taxpayer-funded relief package. We don’t yet know exactly which businesses - beyond pubs - will benefit, by how much and how long it will last.
The Office for Budget Responsibility, the UK’s economic forecaster, has projected the government will get £33.6bn from business rates in 2026-27 rising to £41.9bn in 2029-30, external.
Business rates are the sixth largest revenue raiser for the government after income tax, National Insurance, VAT, corporation tax and council tax.





