The Treasury has announced a business rates support package worth more than £80m a year for pubs and live music venues in England and Wales, after industry backlash to planned reforms.

The Exchequer Secretary said every pub will get 15% off its new business rates bill from 1 April, worth about £1,650 for the average pub next year. Bills are then expected to be frozen in real terms for a further 2 years.

The government also claimed around 3 quarters of pubs will see their bills fall or stay the same next year.

Why this matters for debt collection and credit control

1) It’s a short-term cashflow release valve, not a magic fix

Rates cut can help a venue avoid immediate pressure, but it doesn’t automatically resolve the wider reality: hospitality is still running on tight margins, and many businesses are juggling rent, utilities, wages, VAT, supplier terms, and seasonal volatility.

Collections takeaway: expect some debtors to say, “We’ve got rates relief coming, we’ll pay you next month.” That may be true, but it’s also a classic delay line unless it’s tied to a clear payment plan.

2) It changes the “pay order” inside a debtor’s business

When a fixed cost like rates eases, businesses often reallocate cash to the loudest or most urgent pressure points. That can help some suppliers get paid sooner, but it can also fund other priorities (payroll, rent, HMRC, emergency repairs).

Collections takeaway: don’t assume this relief flows to trade creditors. You still need to control your place in the payment queue.

3) It’s a reminder that policy shifts can create sudden stress

The article makes clear there was backlash because businesses feared closures and job losses from the earlier rates changes. That’s important because policy shocks can translate into payment shocks: disputes rise, credit terms get stretched and promises to get vaguer.

Practical credit-control actions you can take this week

A) If you sell to pubs, venues, hospitality suppliers

1.Refresh credit risk checks on your top 20 accounts (especially anyone already “slow pay”).

2.Move from statement chasing to invoice-specific chasing: dates, PO references, delivery confirmation, and dispute status.

3.Ask one clean question: “What date will the bank transfer land, and for which invoice numbers?”

4.Offer 2 payment options:

Option 1: pay the oldest invoice in full now

Option 2: 50% now, 50% on a fixed date within 7–14 days

5.Get it in writing (email is fine). Vague verbal promises are where aged debt goes to die.

B) If you are the business owed money (SME supplier)

Segment your ledger:

Green: pays on time

Amber: 7–30 days late

Red: 30+ days late or repeat excuses

Escalate earlier for red accounts: tighter terms, pro-forma, reduced credit limits, or staged deliveries.

C) If you are the debtor (you owe suppliers) and want to avoid default

Use the relief smartly: ringfence cash for a structured catch-up plan.

Communicate first. Creditors are often flexible when you’re proactive and specific.

What to watch next

Watch for how the final details land and how quickly businesses feel the benefit from 1 April. If the sector still faces rising costs elsewhere, we may see a familiar pattern: relief reduces immediate distress, but late payments and arrears stay sticky unless trading improves.

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