Pubs, clubs and live music venues in England will get a 20% cut in business rates from April next year, Prime Minister Andy Burnham has announced. The discount will apply to nearly 32,000 hospitality businesses and is expected to save the average pub around £1,100 a year.
No 10 said the tax cut will be funded by a review of reliefs given to businesses that 'do not make a positive contribution to local communities' such as vape shops. Mr Burnham also previously pledged to raise taxes on out-of-town warehouses for online giants such as Amazon to help pay for cuts to rates for hospitality firms.
Government backs community businesses
Mr Burnham said: 'This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.'
The Government will look to set out further reform to the wider business rates system, including small business rates relief, at the Budget. The 20% cut comes on top of the 15% relief announced in January.
Chancellor and business owner react
Chancellor of the Exchequer John Healey said: 'Pubs, clubs and live music venues are at the heart of communities across the UK. We are determined to bring hope back, give businesses the support they need and generate growth in every postcode.'
Iain Hoskins, owner of Ma Pub Group in Liverpool, said that an extra 20% relief on business rates would go some way to 'chipping away' at the rising cost but cast doubt on how many venues would be covered by the change. He said when a 15% cut was announced last year only one of his five venues qualified 'because they didn’t have the word pub in their name'. 'They were a cafe bar, which was a posh pub, but they were a pub, you know, nonetheless.'
Mr Hoskins said his bill was between £200,000 and £300,000 across his venues. He added: 'I don’t want to sound ungrateful, but the increases were so huge last year that now we’re sort of chipping away at some of those increases. We’re not actually… getting better value than we had before. We’re still having to find extra money for these business rates. But you know, it is a relief that actually some of that is mitigated quickly. Twenty per cent isn’t an insignificant figure.'
Broader policy moves and devolution meetings
Mr Burnham has made Scottish Labour leader Anas Sarwar a lord and minister in the Department for Business, Innovation, Science and Trade as part of a raft of ministerial appointments on Wednesday night. Lord Sarwar was among the first to call for Sir Keir Starmer to stand down earlier this year.
Later on Thursday, Mr Burnham will meet the leaders of Scotland and Wales for the first time since becoming Prime Minister when he travels to Glasgow. Mr Burnham backs further devolution, but both First Minister of Scotland John Swinney and the First Minister of Wales Rhun ap Iorwerth want independence for their countries. The former Manchester mayor said he will not be considering any referendums and is instead focused on delivering growth.
Ahead of the meetings, the Prime Minister said: 'When I say we need good growth in every postcode, I mean every postcode across the whole of the UK. Every place and every person matters. I’m not focused on point scoring or discussing constitutional changes like referendums, I want practical measures to help people live well and bring back hope.'
The First Minister of Wales said: 'I look forward to meeting the Prime Minister in Glasgow today. It is fitting that we meet in Scotland, as it underlines Wales’s case for parity of powers and a fairer funding model that reflects our needs. Number 10 North must not become just Whitehall with a different postcode. I agree wholeheartedly on empowering communities – it’s at the heart of my politics – but decisions affecting Wales should be made in Wales, and it is for the Welsh Government and our Senedd to work with the people of Wales on how power is exercised and shared within our nation. At a time when families are still feeling the pressure of the cost of living, I am also keen to discuss how our governments can work together as equal partners to deliver improvements to the lives of people in Wales.'
The Prime Minister will also be at the opening ceremony of the 2026 Commonwealth Games on Thursday.
