Burnham announces 20% business rates cut for England pubs and music venues
8 reported2 unconfirmed
Prime Minister Andy Burnham has announced a 20% cut to business rates for pubs, clubs and live music venues in England, set to take effect from next April. The £100m package is part of Burnham’s broader effort to support local high streets and tackle living costs for working people, according to a government statement. The cut will benefit nearly 32,000 venues, with the typical pub saving an estimated £1,100 in the next financial year, though the largest live music venues are excluded. The measure builds on a 15% relief for pubs and venues announced earlier this year by former chancellor Rachel Reeves. Burnham stated the plan would be fully funded, including by reviewing reliefs for businesses that do not make a positive contribution to communities, such as vape shops. The announcement follows other cost-of-living measures this week, including a £2 bus fare cap and a VAT cut on electricity bills, which have raised questions about funding. Hospitality groups are expected to welcome the plan, though some venue owners expressed caution about whether the relief fully offsets recent steep rate increases.
What’s reported
The 20% business rates cut applies to pubs, clubs and live music venues in England, starting next April.
The £100m package is fully funded, including through reviewing reliefs for businesses like vape shops.
Nearly 32,000 venues will benefit; the typical pub will save an estimated £1,100 in the next financial year.
The very largest live music venues are excluded from the support.
The cut adds to a 15% relief for pubs and venues announced earlier this year by Rachel Reeves.
Other cost-of-living measures this week include a £2 bus fare cap and a VAT cut on electricity bills.
Funding questions have been raised about the bus fare cap and VAT cut; the digital ID scheme scrapping was cited for the VAT cut, but a sacked official said that scheme was unfunded.
Iain Hoskins, owner of Ma Pub Group in Liverpool, said the 20% relief helps but noted his venues saw rate increases of 100% to 150% last year.
Open questions
How the £2 bus fare cap and VAT cut on electricity bills will be fully funded, given doubts raised about the digital ID scheme’s funding.
Whether the 20% cut will be enough to offset the large rate increases experienced by some venues.
Key figures
Andy Burnham, prime minister
Rachel Reeves, former chancellor
John Healey, new chancellor
Darren Jones, sacked chief secretary to the prime minister
Tina McKenzie, policy chair of the Federation of Small Businesses
Iain Hoskins, owner of Ma Pub Group in Liverpool
Sources: The Guardian
