Andy Burnham has announced plans to cut business rates by 20% for pubs, clubs and live music venues across England, effective from April next year. The reduction is expected to save an average pub around £1,100 per year and will apply to nearly 32,000 hospitality businesses.
However, the very largest live music venues will not be eligible for the discount.
Funding the tax cut
The revamp of business rates will be financed through a reassessment of reliefs for businesses that "do not make a positive contribution to local communities" such as vape shops, and a clampdown on online marketplaces failing to meet tax obligations, according to Downing Street. Prime Minister Andy Burnham had previously pledged to increase taxes on out-of-town warehouses for online behemoths like Amazon to help fund reductions in rates for hospitality companies.
Government backing
Mr Burnham stated: "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 intends to outline further reforms to the broader business rates system, including small business rates relief, at the Budget.
